I think you're bang on Chris. Pentax's marketing department stink. They should either bite the bullet, advertise like no tomorrow and discount like crazy to get some brand awareness out there, or give up.
As for lots of camera models to chose from, I think that latterly the three main players actually have too much choice available. Canon, in particular seem to be on a mindless treadmill of releasing new models even if they are essentially the same as the previous ones.
As a Pentax user man and boy, I am now at the point where I am seriously considering switching to Cankon. But I haven't done it yet