I still would like to think that *can* compete with the bigger (not necessarily "better" Ghst2k1) parks... just not every two years, a la Cedar Point.
Kennywood, most likely, has a larger amount of money to spend now than they did 10 years ago when SP was built. I don't know when they bought Idlewild, but I'm pretty sure they bought Lake Compounce in '98. Sandcastle, I believe, opened in 1989. (Somebody want to back me up on these stats?)
Now I could be wrong on all of this, but I would think that Kennywood has more money nowadays than in the late 80's-early 90's because they've expanded as a company.
Anyhow, my opinion is as follows.
If they *really wanted to*, would have taken out SP and put in a record breaker. However, because they *listen to their patrons*, they decided against it. (Henninger said they had plans for an entirely new coaster, but with all the calls, emails, etc. regarding Steel Phantom, they changed their minds. For all we know, the plans could have had drops in excess of 300'-350'. And on a side note, he mentioned that they had [or have] plans for a coaster that goes out over the parking lots.)
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How dare you vanquish the Steel Phantom without his consent? Fear the Phantom's Revenge.