Depends on what you mean by upscale. My understanding is that the bike shop I do business with stays in business selling $500 and under bikes. Hardly upscale. There are probably a few more like me who're buying $2000 bikes, and maybe 1 or 2 who buy the truly upscale $5000 and up machines.
I'm talking about bikes in the $199 and up range, as opposed to the $59 to $199 bikes that are sold by Sears, Penneys, WalMart, etc. Its a different market segment. They don't compete "head to head".