Should the Corvette be "stripped" and offered for the kids? Yes and no.
Let me explain.
No, there should never be a spartan car with the "Corvette" name on it that sells for $20k-$30k. That may be what the Corvette was, but that's not what it is anymore. Doing that would effectively throw away everything Chevy & GM have developed with its image. Besides, if everyone can afford one, then it loses its magic. Once you make it "un-special," and put one in the hands of everyone who wants one, it becomes meaningless. The Corvette is there for people to aspire to own; it's not for everyone. The car is fine as-is. Once the new model comes out, everyone will forget all this "doom and gloom" BS and go back to talking about how awesome it is and how they want one.
Now, should there be a lower-priced "Mini-Vette" for more of the masses? Yes. It would, however be rather expensive to re-use Kappa, even if they did own the tooling and the factory (assuming my understanding that Kappa was under-priced with the Solstice and Sky). They do, however, have a sports car platform and factory combination that could possibly accept more volume: The Vette/Bowling Green combination. While I'm not an engineer, I've always wondered how much cost you could take out of the Corvette without losing too much of the sporty nature of the car. Is there enough that you could have a "Y-Plus" chassis for the Corvette, and a "Y-Minus" chassis that would underpin a mid-$20k two-seater (call it Monza)? This would give not only the lower-priced model that everyone wants, it would save the name and the history of the actual Corvette. It would also have the side benefit of making sure that Bowling Green would have more volume for the factory.
To continue rambling, I could see a Monza as a V6-only car, with about 300ish HP. Keep the option packages simple; this should be a low-frills car. Make it a traditional body (steel, aluminum) rather than fiberglass. Offer it in fixed-roof and true soft-top, or maybe just soft-top only. At the most, give it some minor Vette cues here and there; just enough to sell the "little brother" look. Make sure you put a new Corvette in the ads with the Monza, saying "Hey, you can't afford the big one, but this is just as much bang for the buck, but less bucks!" This is GM's solution to the non-existent problem.
But this may just be me.