Yep. Same is true for the Toyota/Scion Xb. Fifty somethings were buying them to carry their antiques in, but unfortunately there weren't enough older or younger folks buying them for Toyota to keep them in production.You are correct that Honda slowly made the Element more mainstream over the years it was in production.
In the beginning (2003) the target audience was 20's and 30's types. Just one look at the brighter paint colors offered at first should confirm that!
But, as the amount of competing vehicles increased, and with the economy slowly getting weaker (~ 2008 - 2011), Honda found that it was us aging Baby Boomers who were then buying Elements. Hence the more subdued colors available on the later models; which they figured was what the 50's and 60's types wanted. (Mistake!) Even with the SC model being made available starting in 2007, was an attempt at making the Element a bit more mainstream, with the carpeted interior and such.
But Honda forgot one thing: the old adage "You can sell a young mans car to an old man; but you can't sell an old mans car to a young man!"
But now with the economy greatly improved, I believe if Honda made a new & improved Element, it would sell very well for them! : - )