I'm not an industry insider, but people I talk to tell me the Caprice and Cutlass were selling until EBMM raised the price nearly 30%. That's when they stopped selling. In other words, why pay the same price as a Stingray for those? EBMM killed those models with their pricing, not the market deciding they didn't want them.
I'm like you - I bought a demo Caprice at a great price and it's been absolutely superb.
As far as the popularity of Fender goes, I think that a lot of people that buy them only because they see so many other people playing them. A lot of people buy Fenders without trying or investigating other options.