Loveless was in a class - market position - all his own. Even though Jim Merritt has been making the knives coming out of the Loveless shop for a long time, as long as Loveless was still around, they were "Loveless knives."
Now that Loveless is gone, there will never be anymore Loveless knives.
For any other maker's knives I would be in agreement with your bolded statement, however as you state Loveless was in a class - market position - all his own and Loveless knives still are even now that Bob Loveless is gone. IMO, as long as Jim Merritt or other noted makers who Bob would have approved of are making knives true to the Loveless patterns and Loveless 'way' in the Loveless Shop in the spirit of the Loveless Tradition there will continue to be 'Loveless' knives.
I think Mr. Merritt is making a mistake using the Loveless mark, even slightly changed on the knives he's making. If I were buying - which I wish I were financially able to - I would love to have a "Loveless knife" made during Loveless' lifetime. I would also love to have a Merritt knife, but only if it were so marked.
I believe the Loveless 'Mark' was changed slightly more as a time-stamp to mark Bob's passing then anything else. The knives haven't changed as they are still being made by the same maker in the same way in the same place as they have been for years.
There are a number of folks making excellent knives that are basically, if not totally Loveless' designs. Merritt as the heir to Loveless' shop, is in the position to continue the shop using the original patterns - but several other guys have also either used Loveless patterns with permission or have worked with Loveless and certainly learned his design language from the inside out.
These are the guys with whom Jim Merritt will now have to compete. That is if he is interested, he can certainly do as he pleases.
I just doubt that collectors will accept the knives he is making now at the same market position as the identical knives he made when Loveless was around.
I don't believe Jim Merritt is having to or will ever have to compete with anyone, just like Loveless knives have never had any competition.
Collectors seems to be accepting them. They are bringing less on the secondary market than the knives made before Bob's death. I'm not sure if Jim has reduced the shop prices since Bob's death, I doubt it. If anyone knows for sure, please tell us.
That would be my take on the situation...