JackMDS, I'm interested in your last comment because what you're seeing doesn't match what I'm seeing. I see a ton of SOHO traction - folks love 802.11b at home because it lets them share DSL/Cable when they don't have wiring, and these days it's reasonably cheap and easy to set up. But mid / large enterprises I see don't have much traction because 802.11's still got some pretty serious warts from an enterprise perspective (manageability, security, roaming, reliability etc.) IT managers who have 802.11b at home and know a good bit about it are frankly kinda scared of it in the office (those who don't know about the issues with wireless are reckless and often have to learn the hard way... kinda like those IT managers who never patch their Windows boxes). Hence the current wave of new product introductions for enterprise wireless platforms which try to extract a hefty price premium for addressing those issues. 802.11 certainly started out as a business solution (I used WaveLAN and then 802.11DS back in the day), but the volume and cost driver I see is SOHO, and only now is it getting driven back into business as folks go into work and wonder why they can't have the same mobile convenience as they have at home (that, and there's a big notebook / mobile push in business, and wireless networking is pretty much a must for that to be viable).
Compatibility is generally a good engineering and IT practice. I can't fault folks at all for wanting g for its compatibility with the existing base with b - it makes a lot of sense. However, a lot of folks are finding that the performance of a mixed network looks a lot more like b's performance than g's, so it may end up that compatibility is less useful in practice than in theory. Or it could end up that nobody cares, or that they find out after they've already bought into g
Development priorities certainly do follow market share. Right now, everybody's chasing g because g has so much more share already than a and g is expected to grow wildly while a is expected to grow slowly. If I were a vendor, though, I might weigh the counter argument that the a market has fewer players and less interest and could be a nice high margin niche, while the g market is going to be absolutely cut-throat.
I just don't see the picture for 802.11a as being quite as bleak as you do. It's not looking like a is going to make it in the mass market / end system market - g hasn't been out all that long and already it looks like g has just won there. But I think that a might still have a lot left in it, particularly for network infrastructure type solutions (that is, building to building or AP to AP) where compatibility is pretty much a non-issue. In that respect, perhaps 802.11a is better thought of as a replacement for many of the wacky proprietary wireless solutions more than as a replacement for 802.11b.