I STRONGLY disagree that there would be a market for one... Taurus and Beretta probably would too. Think of all the companies who already make .22 conversions for Glocks, 1911's, AR-15's, AK47's...........
There are LOTS of people (my father is one) who love .22's with a passion. Almost every pistol or rifle he owns also has a companion .22 version sitting next to it. Dad even has a full sized S&W revolver built off of a .44 magnum frame with a 6" barrel that's .22 magnum. He carried a Taurus PT22 in his pocket all the time. Not for protection, but just because he never knew when he might be somewhere he could rattle off a few rounds at a tin can.
If Kel-Tec made a $100 conversion, or even a $200 complete pistol in .22 the size of the P32, I'd buy one, and I'm sure lots of other folks would too. This is the third time I've seen a post like this recently (not all on TFL).
And I don't care HOW cheap .32 ammo is, I can buy 550 rounds of .22 at Wallyworld for $8.99 plus tax.