I think there is definetly a place for grey's but the dealers do need to give a good warranty of sorts.
Greys help noobs get into biking, because they are affordable, but we all need the dealer to stand behind his product.
If a dealer has to give a good warranty, then they will shy away from dodgy bikes that they won't be able to repair, so it should improve the situation.
I think grey's should stay, but the quality must increase.