I think most everyone wants a longer range vehicle. If they started selling the Model S and X today for the same price but with 1000 miles of range, of course it would sell insanely well. The hitch in that is the "same price" bit. Saying that it would be nice to have a longer range vehicle is pretty much stating the obvious.
Tesla has to balance the range with the price. Because if they release that 500 mile Model S for $180k base, a lot of people will be thinking, "you know, 400 miles is really plenty." Not everyone, mind you, but probably enough that the 500 mile version won't be viable, especially if it's got a different pack design, suspension (for weight), and who knows what else.
This is why the increases are more likely to be incremental. Small changes in design that can be applied to the entire line are more scalable and financially more viable. The exceptions would have to be some major breakthroughs in cell technology or in motor efficiency.