I like how the S550 Mustang drives, but not as much as the Z... But it's true that some people do not care about the same things some of us Z owners do, and as a result those guys are going to buy Mustangs and Camaros because dollar for dollar, they are faster, no question. They also have a usable (for kids) back seat and a sizable trunk for your wife's luggage when you go away for the weekend.
I would not mind a slightly higher starting price for the Z, losing 300 lbs and gaining 25 hp (3000 lbs/360 hp) would be where I'd like to see the car go. A $60K price tag combined with the toy car/impractical nature of the Z would just result in a car that won't sell, even more than the current Z.
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