Not missing the point at all, you're absolutely bang on as far as most people on this board feel.
We liked the variety of Medieval life represented in the 90s sets, and we are extremely disappointed by the entire focus being on knights and combat in the current knights theme. I think almost everyone here who collects Knights would prefer a return to the style of the 90s.
We like Steck for its variety of build options, and dislike System X castles because they are too limited. Odd you should say it takes ages to set up, as it was designed to make it easier, with larger pieces, especially the 3268 keep pieces (which I hate btw), but we all know the pain of those stupid red and yellow connectors, so maybe that's what you were referring to.
The new Dragon Knights theme is Playmobil going off on a Fantasy tangent. We have yet to see if this will replace the standard Knights, I suspect they'll run side by side for many years yet. If the fantasy theme went on with orcs, trolls and goblins then I'd like it better; dragons while impressive are too big to have many, but that may be a bit too obviously LOTR for Playmobil to pursue. The dragon "tower" castles look to be the same style as the recent Spanish lighthouse, not a building system I like with no variation possible at all, though i'll no doube be getting one of each at least eventually.
If we assume Playmobil have researched their market, then this is what they think will sell to boys, and we'll see more fantasy and dragon stuff and less realistic medieval life, if less than the current offering is possible.
At least we all still have the option of building our towns and marketplaces using DS and accessory items, though I'm not expecting much joy from ordering DS items in the US from all reports on this forum.
For realistic historical sets it looks like we'll be relying on the Romans, Egyptians and whatever follows. The Romans were also sadly thin on life outside the army, the Egyptians doing slightly better for civilians, but I think the days of bakers, potteries, museums and blacksmiths are long gone. With no Hans Beck to steer things that way, those old sets are going to command higher and higher prices on eBay.