It's a weird one really and I'd imagined that the new 1050 was going to be an updated 990, ie the most dirt orientated of the big Vs?
I can only think that production costs must be very low as it's essentially an 1190 with cost cutting such as cheaper suspension and cheaper wheels (and no doubt a few other less obvious bits'n'bobs). It remains to be seen just how cheap they will be sold but, if cheap enough KTM could attract a few new riders to the brand with a cheaper 'big' bike and a 'newly qualified rider' friendly engine and I guess they'll be happy to have achieved that with little outlay - a good ROI.
It's all about 'customer offer', 'perception' and 'building the brand' - they'll probably be like WBM in 5 years or so
Andres