I have to say I'm surprised. I know there's been a lot of debate here and elsewhere on "the effects of fansubs on R1 DVD sales," but one trend I've noticed is that the more loli content a series has, the worse it will do in R1 sales compared to other series of comparable fansub popularity. Cases in point: Nanoha, Popotan, Strawberry Marshmallow, Rozen Maiden, Higurashi, and (maybe) Familiar of Zero. And look what happened to the company that licensed all of those. I don't know why this is... perhaps neither casual buyers nor hardcore fans want DVDs that scream "I'm a pedophile"* on their shelves. I thought Funimation was wiser in selecting series that would appeal to broader audiences. What's next, Moetan?
* this is regardless of whether the shows actually are evil/immoral/why-don't-you-have-a-seat-over-there? material or not. I haven't seen Strike Witches, so I'm only familiar with it by reputation.