My take is this. Kershaw is making some good budget knives. ZT is now aiming towards crazy designs that push the envelope. But there's a big gap between $20 clamshell packaged knives at Walmart (kershaw) and $700 certificate of authenticity premium knives made to show off. Sure, they have knives that fall into the $200-$250 price range but most people won't buy those. Most people think $100-150 is expensive but worth it for good quality. ZT started in this price range and it obviously worked. Guys wanted a little something to show off that'd work hard. Not drop a corvette payment on a knife.
I posit that ZT should return to its roots in A line. Not solely manufacture knives for walmart and I hope they don't abandon their explorations into crazy manufacturing techniques. But they did abandon the segment that DID build their brand, if anything by simply being fodder for marketing phrases.
Blue class, black class, and gold class. Kershaw line, X line, and Zero Tolerance line. For the X line bring back knives like the MUDD, purpose built to withstand crazy environments. Use steels like Cronidur 30 or CPM154. Keep it relatively cheap but built to high standards. Don't need to experiment much in this line. People know or should know what military and law enforcement guys will want to carry and that $150 is about the top of their price range unless they're knife nuts anyway. Add in some specialty tools for paramedics and special ops types. Make some of these tools off limits to the average joe. Maybe develop a new non-magnetic multitool that exceeds what SOG, Leatherman, Gerber, and Victorinox are producing. Make them where they have to be bought directly from KAI with credentials being necessary. I believe this would bring ZT/KAI back to their roots and produce tools that would be interesting to the average first responder while still catering to us knife nerds and the average Joe who thinks $30 is a lot for a pocket knife.