I thought Nikon was targeting their cameras at photographers
Yeah, one might be tempted to think that, but Nikon is also clinging tenaciously to the laaaaaast of the point and shoot digital crowd. IMMSMC, Nikon in 2013 was #1 in sales of small, affordable compact cameras world-wide. The folks running Nikon are still trying to hang on in a declining market segment. There are places in the world where d-slrs are simply out of reach of the majority of citizens (developing world, China, etc.)
This whole $1,200 compact, smaller-than-APS-C, smaller-than-m4/3 even market, where the Nikon 1 series falls in the camera hierarchy...there really is not much competition from other camera makers. Maybe that's why Nikon thinks they have a shot with the 1-series. MOST of the serious mirrorless cameras today are m4/3 format (2x FOV factor), OR APS-C (Fuji X-series, with 1.5x FOV factor). As some speculate, it's possible that Nikon does not want to "validate" the m4/3 format by competing head-to-head with all the other players, like Panasonic, FujiFilm, and Olympus to name a few; by keeping the 1-series "separate" from the m4/3 and APS-C sensor cameras, AND with an adapter link to Nikon F-mount, Nikon keeps the 1 series competing in its own, small pond.
But judging from on-line forum responses, the 1-series is not taking the world by storm; Panasonic OWNS the niche that emphasizes mirrorless camera video; Olympus has the gorgeous OM-series; Fuji has the sexy X-series, with a camera for almost EVERY level of shooter; Sony has tried everything it can think of, and has made some very fine cameras, both interchangeable and fixed and fixed-mount zooms. Nikon is off in a separate niche, which is so far, not really garnering much buzz from the on-line camera press, or the web, or the tech web sites, or the photo magazines. Nikon, and Canon, both are the leaders overall, and are not really willing to go whole-hog in the mirrorless fray. The EARLY pioneers, Panny and Oly, have already captured a lot of mind share and market; Fuji is the darling of the camera press and many serious shooters; Sony has its fans too. The Nikon 1-series and the Canon M...ehhhh...not much traction...