An in-house private label would be a very good idea. Their dealers could opt in or out, and they could let independents who were not bound pick up the brand. HD's distribution network and financial mass are their biggest assets in pursuing foreign and the domestic youth market. I think the HD name on these little rice burners is actually a liability, at least in the US.
The core HD ridership in the US largely ignored the Street 500 and 750, but I could see this little 338, if it appeared in the US, being actively targeted for abuse. I can practically hear some biker guys I know saying, "It don't DESERVE to wear that!", as they deface the tank of some hipster's parked HD350.