^^ Yeah, but that's the thing - GM already had at least one other division that would have met the need of those "average joes". I do understand what you are saying, but Pontiac can't be the car for non-enthusiasts if they already have Chevy and Buick (and even Saturn).
Lutz was right - Pontiac had to try going up-market, it's just that it never got the time/products to fulfill those goals. The car market has been flipped totally on it's head over the past 2 years and GM wasn't doing a consistent job on pushing Pontiac's "performance" credentials. They were very wishy-washy - coming out with decent products like the G8 and Solstice, but then diluting the brand with craptacular efforts like the G3 and G4 which was being mostly pushed by their dealers.