Don't forget that Harley for a long time was really the only American made motorcycle. I know there is Victory now, but that just started up in 1998. A lot of people who ride Harleys are middle-class, blue-collar kind of people -- who buy American as much as they can. So without any competition from another American manufacturer Harley didn't need to innovate or do much.
Now they have competition from Victory, and I think it has been good for them.