There IS no local dealer! Even in the SF Bay Area (that is to say, a large metropolitan area) the one store that used to display the VPC1 no longer does. Not much to support if local dealers won't display a product.
Did you ask the retailer why they no longer display the VPC1, or if they would be getting another unit?
I understand it takes just a little bit more set up to display and demo the VPC1.
Yes, this is the main reason: No built-in speakers and no built-in sounds.
But my guess, and I may be completely off-base here, is that Kawai has not been aggressive/imaginative in putting in place a program to motivate dealers to display the VPC1. Which is a damn shame.
The VPC1 appeals to a niche customer base, many of whom will likely purchase the product from an online retailer, because even - without touching the keys - they'll know that it offers the most realistic keyboard action available in a controller.
The dealer profit for a VPC1 is relatively low compared to other models, while the additional investment required to properly display a board (stand, speakers, audio interface, computer, software, staff training) is relatively high. I cannot speak for the dealer you refer to, but perhaps they found that the majority of customers interested in their store VPC1 setup, came to test the board for an hour or two, only to quietly leave and most likely order the product online for $50 less.
I'm a big fan of the VPC1 and would love more dealers to show this product in their stores. However, I accept that it appeals to a niche audience, and that some dealers may prefer to dedicate the floor space to other models that are profitable and/or easier to demonstrate and therefore sell.