A shame? The reason that Western Digital left the market is because no one would buy their drives. The reason why? They were bad -- I mean B-A-D. Poor design and unreliable.
You act as if there's separate research and development for enterpise drives like SCSI, and workstation and consumer drives like ATA. There isn't. The only real difference there is interfaces -- and that work is really done by a few companies that do the controller chips.
And what's more, the drive manufacturers cross-license their technologies all over the place. So, any technology that is developed by one company can work its way into any drive by any manufacturer.
Margins in the SCSI market are very good. But Western Digital doesn't know how to execute well, and has made its niche in selling crappy drives to folks who don't know any better.
If you think that Western Digital is squeezed, it's because they have poor quality control and, at least, until recently, have been total technology laggards. I won't use their drives, and there are a lot folks who have a lot of drives run through their hands that won't either. That's the mountain that Western Digital has to climb.