And remember, the lower end of the market is inhabited mostly by hobby roasters, ...
... and so those 1 lb roasters are competing with hopped up DIY methods that can do a half pound -- and most folks in the market for a 1 lb roaster will be willing to simply do two batches instead.
Then there's the matter of if it won't profile, it's not worth the leap from a DIY method where you at least have manual control and superb cooling. If you're going to pay a lot anyway, you'll likely be willing to pay more for good control.
Personally, I can't see a 1 lb roast as a sweet spot. Maybe for folks who refuse to freeze their coffee for a few weeks' storage for private use, I s'pose.
I definitely like my 10 oz batch for the popper and 3 to 6 lb batch for the OS/roaster. The former lets me do one-offs for customers (I only sell 1/2 lb bags) or batches for my own short-term consumption, whereas the latter lets me batch multiple customers (or larger quantities for customers) as well as stock up for myself or for the church.
Personally I find that committing to freezer storage and having multiple purposes for roasted coffee (customers, church, workplace, myself) allows me to be insanely flexible and work with that several-pound sweet spot.
Actually, I have an idea for an array of unique 1 lb roasters for coffee shop use -- "roast to order while you hang out" -- but it got sidetracked seven (is it seven?) years ago by the OS/roaster for the F/M. And I don't want to own a coffee shop, so...
