Will it really? The general US customer in this echelon, not enthusiasts like us here, but people with means and their desire to buy something in this class will they really care about the power difference?
Let's take the new LS and 740 as examples. It does a manufacture's claim of 0-60 mph* in 4.5s. The G11 740i has seen anywhere between 4.8 to 5.2 seconds. So for giggles, let's conservatively say the upcoming V6 in the S450 will yield about 5.0s. Not bad, but not as great the LS. So if the S450 is offered at about $82,000 and assuming the LS starts around there (+/- $2000), I think 3 out of every 5 customers would forego losing 0.5s so they could get their asses in an S. And the way I see the those 2 other customers doing, one would go and get an LS because of the ~60 hp deficit. And the other customer would convince themselves in spending an extra $15,000 or so so they can get that stellar 0-60 time they seem to value so much by getting into "bare-bones" S560.
Granted, customers are more aware than they were 10 years because they have available a dearth of info online so there'd be some who'd want the latest engine tech the automaker has to offer. But if a big chunk of the buying public wants a big shiny car with that big shiny badge and it's available at cheaper price point, they are going to get it. Or at the very least, it may convince them to get the honking V8. And I don't think the 6cyl will eat into the S560's sales too much, as the S probably has built-in audience who only see fit to get at least a V8 in their S.
*Frankly, I'd be more than happy with the new inline-6 in the S. To the general public, they refer to the 0-60 times as
the reference point in determining a car's performance. But how many really dragstrip their cars, especially these kind of cars? At the end of the day, these cars are comfy long distance cruisers. I no longer see the appeal in getting an AMG in an S-class. Heck, I no longer see the point in getting a hi-po version in an E or 5er. As long as the car has good passing power (from 20-70 mph), handles well enough where I need to be evasive to avoid an accident or I don't get car-sick, is comfortable, and has adequate 0-60 times (low 5 seconds), I'd be happy.
@Merc1, you mentioned that the lack of power is what will turn people off from the S450 versus an LS, thus my above explanation. But what may be the deciding factor in getting an LS over an S450 will probably not be the lack of power but the lack of content. I bet, once it's released, you could get a very well equipped LS (i.e. all the significant options except the Exec Rear package) and the price would hover around $93-95K. While a similarly equipped S450 would surpass the $100K mark. That's probaly what would deter a customer more than anything.