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Thats it, proved that better quality kids bikes were a viable business model. Medium and long term as it builds a new generation of people who ride because they had a positive experience when riding a decent bike as a kid instead of an utter misery with the junk that makes up the vast majority of the kid bike market*
Then other companies jumped on the band wagon, healthy competition. Though tbf through the guardian reading west end, honda jazz hybrid driving, parent park volunteer maintenance team families, they buy, sell and resell islabikes, frog, squish, hoy and woom bikes religiously. Not a dig at folk in this group, I'm probably almost in this group lol, just thats the ideal target market for the original purchaser.*Yes price, not everyone can afford a £550 bike for a 7 year old. Thats why I say long term, as the number of decent quality kids bikes in the used market helps sort that out, providing £150-250 used decent bikes that you can use for 2 -3 years with minor cost to operate as the parts are decent and then you can resell for usually the same you paid for it. Cost of ownership through the kids 2-3 year growth spurt = negligible.
Ceasing production and sitting tight for a few years is a very sensible move on their part, absolutely no point trying to forge ahead in the UK right now, baton down the hatchs and try to survive.
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BrickMan
Brands like Orbea, Ridgeback and even Specialized have definitely improved the suitability of their kids bikes.
I think @JonD is absolutely spot on - Isla Rowntree showed the industry that there was a market for good quality, appropriately specified bikes for kids.