Team R&B, I am surprised that you're saying you do not see much demand from the Military and LE buyers for illumination, the talks I've had with LE pretty much necessitate illumination, and if I was deployed today I would sure the heck want it (but shoot, when I was in the military in the 80's they didn't give us any optics, everything was iron).
Much of that depends on what the price difference is. If you're talking about a $500 difference like Leupold charges then yes, many shooters are going to opt for non-illuminated, I am sure this is what Burris is facing as well with the XTR III. But when Nightforce, Vortex and numerous other brands offer illumination as "standard" that is the competition you are facing. If someone is strictly a competition shooter on a budget then I can see your point, but if anyone is thinking of the scope for more of a crossover design for both competition/long range steel and hunting and/or tactical, then illumination is going to weigh much more heavily into their decision. I come from the crowd that says, "better to have it and not need it rather than need it and not have it" and given this day and age I think a lot more are gravitating toward this.