Woops, Brain fart!
Hi guys. I bring greetings from French Guyana.
I'll side with Lewm on this one. Because the people who will go for a 12" arm will pay those prices. It is all about what the market will bare. I'm going to start a new thread on cartridges shortly which brings this into focus.
Is a 12 inch arm better? Overall with medium to low compliance cartridges, a little but it depends on the arm. In many cases not at all and in some, worse. The real jump is to arms that can stay tangent to the groove and are straight avoiding the skating problem altogether. There are several arms available that utilize Thales geometry and normally pivoted but straight arms my personal favorite being the Schroder LT.
The Reed 5T is another example. These arms stay tangent to the record, do not skate and totally avoid the problem of very high horizontal mass which plagues the vast majority of designs.