What's wrong with extending Epiphone's range upwards? They can build some awesome instruments if you pay more for higher quality and materials. It's not like they're not still building the very inexpensive stuff.
For years, folks have said Epi could match Gibson if they got quality electronics, pickups and better wood, and many folks swapped out the first two and raved their guitars were 'better than a Gibson'; why not let Epi run with that and see if it's true? Price will ultimately be decided (as always) by what folks will pay.
Larry