This is a flawed argument. The KT line is a completely different scale versus the fullsized line. The KT line exists for people who like a smaller-scale. When the KT line released Wild Chalice, I wasn't raging about it because I want one that's in scale with my other 7 inch SICs. Same deal with Blade and Blade King Form. The original SICs will always be valueable to those who collect them, regardless if there's a cheaper, smaller-scale alternative.
The KTs sell pretty well, so it would only make sense to expand the line as much as possible to continue its popularity.