i agree with your assessment of the most prized values of the S3 (nekkid, and flat power curve that pulls like a beast) but i must admit that i see the twin headlights (sticking out like a sore thumb) being a rather endearing and iconic feature of the machine.Most sport bikes have two headlights, you just can't notice them as easy because they are covered with a fairing. That's where the two headlight hooligan look came from. Semi-totaled sport bike owners that couldn't afford to replace the fairings, rocking their bikes naked instead.
I honestly don't see what the big deal is. The original speedy didn't even have two headlights.
IMHO, what set the speedy apart from the jap bikes is the flat power curve and the complete lack of fairings.
There are alot of reasons to buy a bike, but buying $11k bike because it has two headlights has got to be the most ridiculous thing I've ever heard.