I don't really understand why this gun should be considered a specialized or small-market gun. However, I do agree that may have been the case for the IZH 35-M. I just don't understand why they were not more widely adopted. The gun's design is nearly identical to the Feinwerkbau AW93 (that's a $2300 gun in 2012!) so in terms of recoil and trigger adjustments this thing is FAR superior to the Model 41, the Ruger Mk ii/iii, Trailside, or High Standard. I can tell you because I've shot all three of them extensively, both for fun and for competition. Don't like my opinion? Fine, look at ISSF videos of international 25m rapid-fire competitions and you'll find some shooters shooting the IZH-35M and more shooting the AW93. Then you can also ask around on Bullseye-L list or go to the Bullseye Nationals at Camp Perry and see how many folks are shooting these guns.
Finally, let's face it. We are not going to use a .22 pistol for defense. Maybe do some varmint shooting but primarily, we want to plink! So why on earth wouldn't people want a gun with awesome recoil behavior so they can shoot fast as heck!? AND still be more accurate than you can imagine (though I admit any .22 pistol is more accurate than it's shooter, unless you can shoot High Master scores).