Those movies wouldn't have been made at all if not for the interest generated in the genre.
No one makes a movie to LOSE money.
of course. That goes without saying but doesn't help your point at all.
The fact of the matter is that there were hundreds, if not thousands of films made around the world at that time with similar budgets to Breakin. They weren't mainstream fare either. $1mil for a film back then was damn near pennies. They thought it would work for a inner city markets. Which is true.
Films made for smaller, non-mainstream markets happen all the time.