I've just uploaded my impressions and photos of the 2011 Host Exhibition held in Milano 3 weeks ago, here http://www.coffeeco.com.au/articles/host2011.html. If you think that as Europe goes, so goes espresso, it looks like we're in trouble. Teaser quote below:

"By my admittedly rough count, about one in every two venues offering espresso drinks was using either a Superauto or a pod machine."

Alan

Pretty depressing report, Alan. In the U.S. all the excitement in the leading-edge shops is about single origins and brew-to-order drip. It will be interesting to see how this plays out in Portland next April.

Well, what would you expect? Rancilio has put sizeable R&D efforts in their temperature-profiling Xcelsius machine without anyone caring. Same with Cimbali that now has linked grinders and machines for more convenience, without anyone giving two shits either.
If the market for traditional machines want to stay traditional, there is no point in making new products. The superauto crowd is wowed with the addition of a $100 touchscreen. Easy math.