Got to blanket the all segments, they have a car for everyone. If you want a coupe, convertible, wagon, SUV, they have it. If you go to Cadillac and want a coupe, wagon or convertible, sorry; go to Lincoln in about 2 years and want anything other than an SUV and you'll be out of luck.
A-class isn't even a money grab, they don't make much profit on those, the real money is made on S-classes and G-wagens. Really Mercedes is doing a public service by bringing Mercedes-Benz quality, technology and safety to more people. I don't see anyone knocking Chevy for not just selling Corvettes and Silverados and scrapping any car under $30k. They still have the Spark and Sonic and the Traxx, as they should because they aren't just targeting a small sliver of buyers.
Plus the C-class is not so entry level, that has become a pretty nice car and you can get a 500 hp V8 in it, I think there is room for a vehicle below it. And next gen S-class will raise the bar, AMG GT73 was confirmed today, so S73 will follow, they won't use that powertrain in just one car. They are pushing plenty upmarket too.