Seems to be 2 identical threads running, so in answer to "it'll stop people playing" or "it'll be too niche", I'll post my reply from the other one;
In my 30 years of gaming, I've met far more people that won't play because of soft plastic/pre painted models than I have those that won't play because they come unpainted.
I mean....just look at GW, Privateer, Wyrd, Corvus Belli, and every historical manufacturer among others. Hardly failures in the market....in total for wargaming unpainted models ARE the market, or at least the massively overwhelming majority of it.
No, unpainted models definitely don't stop a game from succeeding or hurt its player base.