I have no idea if there is anything to speculate on in the first place about MTH, but I do feel they have priced themselves out of the HO market. Their Norfolk & Western J is very costly. Quite a few HO enthusiasts who also like steam don't like the wide gap between tender and locomotive on some models. Also, the hobby is still heavily populated with DC operators, and they don't work well on straight DC. DCC is another matter, and I think they goofed in a major way expecting throngs of HO converts to DCS.
Note that their control and sound system, their engineering, and execution is pretty darned good from what I can tell. It's just that they entered the HO market like they owned the place, or more like they were looking to buy the place and expected a lot of changeover from disaffected Bachmann/BLI/Walthers/Rivarossi/etc fans. I think they could have hit a home run with their 4-12-2 if they had not designed it to operate on hi-rail curves with its goofy articulated frame. Then, to be fair, they considered feedback early and changed the placement of both the flying pumps and the lit markers on either side of the smokebox.
In the end, I won't miss them if they bow out. HO has gotten the better of their competitor, Lionel, a couple of times now. I have the Lionel HO Challenger which I happen to like. It isn't my most detailed HO engine costing upwards of $500, and I would never replicate that purchase again. Still, it is very durable and dependable, and it tracks and pulls well. More to the point, it has a DCC QSI decoder. No gutting, modifying, learning new manuals and terminology, and no limitations on what I can do with it...unlike the case with MTH's DCS.