John,
You do make some valid points, but as you stated, you would be a returning pattern competitor. So you already have experience playing the game (ie, spending alot of money to be competitive).
A running theme I keep reading about in MA is the fact that they do not have alot of new blood in pattern. There was even an article that listed the reasons behind the lack of new competitors. I am just looking for a viable solution for that problem.
I am not looking to replace or restrict sportsman hardware. I am merely suggesting either a concurrent series (sportsman, intermediate, and even advanced) using small airframes. I see no reason to limit engine size. I have an enya 80 four stroke in my .40 sized majestic. If you want retracts, go for it. Again, I am just trying to generate intrest in a form of competition that would maximize the use of the latest planes. The 40 sized sport/pattern planes are becoming a large part of the market (look at the threads on the aresti, majestic, venus and the like).
And (with tongue firmly planted in my cheek), if you read Model Aviation, you should be able to compete at least to the intermediate or advanced level with a 40-60 sized plane.

If taken at face value, then you should have no reason to sell your small plane to move up the ladder. You hit the nail right on the head about the main problem with pattern when you said that you would have to buy and build a whole new plane just to move up. The same holds true just to get into the door with sportsman currently. The main difference between your concept and mine is that mine would cost about 1/4-1/3 RTF than yours. When youre talking about an entry level pattern plane costing $1200.00, thats alot of cabbage for the average sport pilot to digest. Specially if he goes in and finds out he either isnt cut out to comptete, or loses the plane. Most sport fliers arent showing up at the field on Sat morning with a hydeout or a focus, but youre seeing more n more sport/pattern planes coming out. They are sleek, sexy (dare I say that word), affordable, can fly with minis or standard servos, and a good motor in its size will cost you under $125.00 brand new. So what if you cant do loops the size of Texas with an OS 46 in a 5 1/2 lb plane, it will still pull you up fast enough to power over the top.
Marcus,
I recall the IMAC onedesign thread you had a while back. It's been a while since I've seen you online. I went to the IMAC event out in Winston the first weekend in June, and I think I was one of 5 non-competiting spectators (meaning competitors, family or friends). Was a great contest, but in a way it really proves my point above. The smallest plane out there on Sunday (finals day) was a 29% bird. There were two of them in IMAC basic. Everything else was 33% or larger,with emphasis on larger. I had visions of building a small (1.20 size) IMAC plane until that contest.
There's been an AT-6 spec racing series here in the Central NC area that got around the high costs to go pylon racing. They set a standard of either the House of Balsa, or Global .25 sized AT6. Built stock, and using either an OS or TT .25 (not sure which motor is standard this year, I'm sure someone could tell me). The excitement level is not any less than the larger more expensive planes. Then speeds are slower, but when the playing field is a little more than level, the great pilots excel beyond the good ones. Even though I have no desire to go AT6 or pylon racing, thats where I got the idea for this series. Not the same idea, but a good basis for modification.
Keep the input coming guys.
Steve