Since Polaris bought Indian, they are basically competing against themselves in that market. Indian has the much stronger brand name and I'm sure draws in more potential purchasers than Victory could ever hope to. If you checked the Indian and Victory model lineup, you would see nearly identical models from each brand. Kind of like the Chevy/Pontiac, Buick/Oldsmobile situation before GM closed the doors on their less profitable brands.
Bottom line; Polaris is out to make money and feel that they can do it more effectively with only one brand of cruiser style bike.
Harley succeeded in putting Indian out of business many, many years ago, when Indian was probably the better quality, more reliable, more dependable bike. And now with Indian back, in name at least, and Harley's apparent success in recent years, it'll be interesting to see how long, or whether, Indian lasts.