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Rolex is cementing itself in the luxury market. It's not about simply being able to afford the watch anymore but rather going through the hoops to obtain one. The desire and exclusivity bring people to the brand.
Rolex is certainly going upmarket and don't let anyone tell you otherwise. Rolex wants no comparison to its old traditional competition like Breitling or Omega. Those brands hand you whatever watch you want, except the occasional Speedy Tuesday/Ultraman which are mostly bought by resellers anyway.
Rolex knows the writing is on the wall for watches being tools. That doesn't mean they are giving up SS sports model but rather SS sports models are their precious jewelry.
Another way to look at it, I think this is a feasible theory, is that Rolex is looking at things from the big picture and they even think they are in a bubble. They do not want to flood the market to meet demand because when the bubble ends those watches will flood the aftermarket and then devalue the brand. Omega has certainly devalued their brand by overproducing watches when most of their catalogue is available for a 40% discount.
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