What's their motivation? Right now, if you want something launched, you have several choices. For small payloads to LEO, you can buy launch services from Orbital Sciences, Lockheed-Martin, a piggyback launch on Ariane, or use the services of other countries like Russia, China, or India. If you want a bigger payload, you can go with Boeing (Delta), Lockheed-Martin (Atlas), Ariane, Russia, China, etc. If you have a really large payload, you can go with Lockheed-Martin (Titan), Russia (Proton) or the Ariane V.

Right now, there is a surplus on launch vehicles compared to the number of payloads awaiting launch. As a result, launch prices have dropped. However, they're still getting the equivalent of several thousand dollars per pound to launch something. If they developed CATS, they might well be cutting their own throats, profit wise. Why would they invest millions, perhaps billions, to develop something that would lower their profit margin.

If we really wanted CATS, all we have to do is remove the restrictions on the Russian launch companies. Right now, the Soyuz booster can put about 16,000 pounds into LEO for about $16 million. That's works out to the $1000/pound level that NASA hopes to reach one day. The Proton may actually be even cheaper per pound.

Getting American launchers for the price Russians already have will take some work. Getting prices substancially lower than what the Russians already have will require either a huge increase in launch numbers or radically new technology. I'm not holding my breath on either one.