It's interesting that Fazioli have chosen to do this. I don't have facts and figures and so I can't give a source, but I've heard recently that the piano factories in Europe are making fewer instruments at the moment, post-pandemic. Now, I have NO IDEA if that's true, but Fazioli introducing a new model gives me some hope that the industry has some life in it.
The 198-205cm size has actually been a favorite in Europe for a while. There was the Bösendorfer 200 which was their go-to salon piano for decades, there was the Steingraeber 205 although it was discontinued, the old Bechstein Model B/V up until the 90s was a 6'7/200cm size, and of course there's the Yamaha C5/S5X size. In many situations in Europe - probably down to the size of most apartments and homes - the 7' size is regarded as a concert grand and so didn't find itself in domestic situations or large teaching studios. For a long time people preferred smaller grands, with 200cm being about the maximum acceptable size in these rooms. Actually it's for this reason that large uprights were so popular there.
This doesn't mean of course that people didn't/don't have Steinway Bs, Cs and Ds at home, or even Bösendorfer imperials. In fact the Royal College of Music used Bösendorfer 213s until about 2000 and switched to Model Bs in their teaching rooms. But that's a professional situation and not a domestic one. Also, I'm only speaking to people's perceptions - of course you can have a B in a small room and voice it to work well. Anyway I'm rambling a bit so I'll stop but maybe there's a nugget in here somewhere....