http://press.porsche.com/news/release.php?id=883
If you notice the Cayenne is the most popular product that Porsche makes. Also do not forget that Porsche soon will be using VW's MBQ platform for all their cars. They already use it for the hideous Panamera.
So yea Porsche is diluted but then again I think people forget that horribly ugly front engine porsche made in the 80s..
If BMW is diluted for making more models than the Cayenne, Macan, and Panamera should all be proof that the old porsche is gone. BMW's claim was sporty luxury vehicles. They never claimed to make sports cars and in their home country they have NEVER been viewed like American's try to make that brand out to be. I mean the first BMW to come to america after being purchased by the current owners was a mustang competitor. Should BMW go back to the drawing board and say "Hey we are going to go back to competing against American muscles cars!"
Porsche equals Sports cars. They wanted to be the German Ferrari that you could use everyday. Porsche made the Cayenne as a cash grab and before they were purchased by VW who ironically they were attempting to buy. Simply put the Cayenne is the vehicle that allows Porsche to make the cars people love and now with VAG money they can do more. Also look at Audi as for years Audi struggled against Mercedes and BMW. It took the VAg group pouring billions of cash into Audi for them to finally make headway. Ferdinand Piech said VAG would spend as much as possible for Audi to become the number 1 luxury car.
Might not like it but BMW has to sell more cars if they wish to compete against the VAG backed Audi who's R&D is not affected by their own cash pool. If Audi is profitable then not only does Audi have Audi money to develop better cars but also VW money. Mercedes is in the same boat as they have always used commercial sales and now have been producing lower end cars because their competition is not just Audi and BMW but the VAG.
In summation if either Merc or BMW are to survive and not get crushed by the VAG they must compete against it. If BMW kept to what many of you people claim they should do Audi will crush them.