It's a bit too big in my book as well, mrdeus. But the 0770CF is an indication that ZT is willing to move in the right direction. Maybe one day they'll make a Hinderer collab based on the 3.0" XM-18. That would be a grail knife for me.
I've been hoping for this for a very long time.
A way back, Kershaw made the Starkey Ridge in ATS-34/titanium. The quality of it is comparable to knives like the ZT0777, ZT0801CF, and ZT0888. In fact, it's pretty much as-nice or nicer than any of the few hundred production models I own, and I think the fit and finish is practically Sebenza-level. KAI has the potential to make a knife of this size with a quality that would quickly put it on everyone's A-list. I love the Hinderer designs, but they are all still a little big. A 3-inch model (especially given actual XM-18s in 3 inches are a nightmare to find) would be hella awesome.
There is certainly a big demand for a knife in this size.