I'm not familiar with Steve's predictions; could you link to these? I'm not sure we should be too pessimistic yet. GaN has proven very robust as a semiconductor and the per unit cost to produce the existing diodes is low. While I would agree that as a direct beam generator as opposed to a pump source there is no market and hence no profit to improve these lasers (look at SORA's stagnation), nevertheless the current $40 diodes are very impressive. Energy density on the phosphor is controllable as with the Casios, however I agree that the development of new blue sources will emphasize power over beam quality. In the near term, BMW will likely ride on existing diodes or something similar and like the projector industry will incorporate higher power and larger die lasers as they become available, rather than jump to vescel's. For now, another source of diodes would be nice.