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It seems to me that that niche is growing all the time. Military and civilian alike have need for use against unarmored, short ranged targets. Small arms conflicts are probably the most common type of combat today, and since (guessing) like 85% of those conflicts happen in an urban environment, it makes it all the more useful. Not to mention the cost of ammo, pistol is generally a lot cheaper, and more common than rifle ammo. Especially as our economy (and most of the rest of the world's along with it) gets worse, the cost will be all the more important.
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