I think they stopped the R system because they didn't have a decent camera to put their lenses on ...
But doesn't their new S system prove that they are actually capable of developing a decent camera? Everything that's good about the S2 could have been done in a slightly reduced form factor for the R lenses, I believe, and with the same CCD as the M9 (just with regular microlenses, not the special offset ones). Or they could even have used a FF CMOS sensor, for lower noise etc.
Just musing here - I've never had a horse in the Leica race.
Ray