H&K used to be a "boutique" handgun manufacturer. They were making enough on their G3 rifle contracts, so they could decide to be very innovative in their handguns, even if they didn't fill the mass-market need:
HK 4: one frame, four calibers--attractive to folks who like "cool" stuff, or who had trouble getting licensed for more than one pistol (frame)--here was 4 pistols in 1.
P7--like the (Walther) P5 and the (SIG-Sauer) P6, developed for the W. German police trials (after the Munich Olympics). Unique--most folks love 'em or hate 'em--and that becomes the H&K signature.
P9S--fixed barrel .45. They did it just because they could.
VP70--holster-stocked machine-pistol, in the tradition of the Mauser '96: old but new. (Machine-pistol???? Fun, yes--but anyone actually find this useful?). Famous as the first polymer-frame pistol.
Despite the fact that the G3 platform was so flexible (spawning everything from the SP89 to the belt-fed HK21) sales inevitably started to slack, so they put a lot of capital into the G11--whole new concept, caseless ammo not requiring case ejection, etc. It literally blew up in their faces. Put the whole company on the financial rocks.
Change of management. 1991 they became part of British Aerospace/Royal Ordnance, and we got a succession of products (marked by the USP and the SL8) that don't quite seem to match the previous HK concepts. Now it's derivitive (let someone else pay for R&D), focused on lower production costs, designed to sell to mass buyers (bureaucrat-driven PDs), not the aficionado. Add British disdain for civilian armament--and of course German, ah, characteristics (most of which are good, but...).
Royal Ordance sold HK off in 2003, but the company's direction had been set. Anyone these days who goes into a wistful gaze at the mention of "HK" is remembering the older products, not the new.
With apologies to the USP fans out there.