Yes but at that point all that would differentiate the 696 from the 1100 is the engine size and cost. I'm guessing the cost difference would not be all that much, which would lead to the question "why even have the 696?".
The entry level aspects of an entry level bike need to come into play in some form.
Big engine vs. small engine is a pretty big difference, but what I mainly meant was not to use very, very cheap parts like the forks on the 696 for example, Myself and others on this board have been trying to have the forks rebuilt for a little more performance, and have been told by some shops that there is little that can be done because the forks are so odd ball.
I feel that "entry level", as far as Ducati is concerned, should mean a milder version, and not a "cheaper" version as in bottom barrel quality parts. how hard would it be for Ducati to just have a good adjustable Showa suspension system for its base bikes and bad ass top shelf Ohlins suspension for all the "S" bikes.
Just my 02.