Greetings, Doug:
I was intrigued by the theories you put forth in your correspondence under the "Disappearing Traditional Bikes" heading. In particular, your follow-up message clarified what you intended by "traditional" bike, and I think explains why Americans have a different view of the scene.
Like many of your respondents I first assumed you were speaking of high-end racing and fast recreational bicycles, and in that segment steel is very, very strong in the US these days. While my race team colleagues mostly ride (heavily discounted) carbon or aluminum bikes, the "retired racers" and "wannabe" recreational group with whom I like to ride are as often as not on steel frames. American custom, Italian semi-production, and vintage bikes all having a sizable presence. Steel bikes have a lot of cachet among the stylish kids in the cities, and there's a strong trade in vintage bikes in recycled bike shops, co-ops, and on Craig's List and eBay.
I've come to realize that you were probably referring to the Raleigh-Sports-to-Dawes-Galaxy sort of market, and it's true that there aren't many options of steel in "normal" tube diameters. But that segment has never been really significant in the US, except perhaps during the bike boom of the early 1970s. College towns aside, bicycles have never been viewed here as transportation commodities. Instead, at least in the regions in which I've lived, cycling has been seen as an elitist, Euro-tinged pursuit--akin to golf or sailing. Formula One, in a NASCAR world.
Still, if one has a little know-how and the desire, a customer with not too much money (just south of $1,000, say, if one's building a fixie and can cheaply source many used parts) can work with a shop to order a new Soma, Kogswell, Surly, or Salsa frame, and create a steel city bike. That all those marques are new and are very, very hot among fashionistas is, I think, very promising. All those folks riding steel may someday notice a lug and fall in love.
Like an early respondent said, I don't think there's ever been a better time to be a lover of bicycles.
Kris Green
Olympia, Washington State, USA