This is the same case for AoC. We as gamers probably like to think it was a flop, but the initial box sales did good enough to ensure it was profitable enough for them to be able to land another --even bigger-- project. While you're right that WoW is an anomaly, we can see that even DAoC and UO continue to be profitable or they wouldn't be there, and thus even AoC is still making money and getting pretty regular & fancy expansions. I'm sure they were hoping for it to be a much bigger success, but it paid the bills apparently and then some.
ArenaNet has a pretty devoted bunch of followers from GW1, and on top they will gain a whole lot more people for GW2. Their entirely free MMO concept --which they're taking a lot further this time then they did in GW1-- will almost assure them 1 million or more copies sold, you can pretty much bet the farm on that. Considering you can still play GW1 for free today, I am certain that GW2 will be very profitable and have considerable longevity too.
I'm not sure I'll like the PvP as much as in DAoC, but then I didn't like the PvP in DAoC as much as I liked the PvP in pre-Ren UO. Very likely most of that feeling is simply nostalgia, however --say what you will-- the siege PvP in GW2 looks very similar to DAoC's and looks quite entertaining. I've watched a couple more siege videos from GW2 and I have to say they seem to have gotten sieges right, probably even improving on DAoC from the looks of it. (Not just improved GFX and more fluid game-play, but some good ideas for improving some of the issues in keep siege PvP.)
Until I play it I am of course skeptical that I could enjoy it on a longer-term basis, but judging by GW1s success overall, obviously there will also be quite a few people who will stay long term with GW2. And much more so then GW1, there will be "DAoC type" of players drawn to it as well, because obviously GW2 is much more of a real MMO then GW1, and the PvP is open world, siege, etc. it has all the good parts.
There most certainly is a market for PvP-centric games when they're done right, as DAoC proved at a time when few others were willing to touch PvP with a 10 foot pole, and most just wanted to make EQ clones with at most PK servers and/or PvP switches. The fact that a 10 year old MMO has lost it's luster over time is simply inevitable, and has IMO nothing to do with it being a PvP-centric game.

I do want to also say though that, contrary to how it might sound, I still agree with much of what you say just not the general idea that PvP games are doomed from the start and have no market.
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Windwalker
DAoC Research Wiki: http://tinyurl.com/35564tf
Minstrel Mentor Column: http://tinyurl.com/2uog2ur
DAoC Research Wiki: http://tinyurl.com/35564tf
Minstrel Mentor Column: http://tinyurl.com/2uog2ur



I will miss you VN!
) there are several different places you can do that. Here a few I know of, add others you find so maybe they can get coordinated. 

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