The AE86's reputation I think, as a well balanced, fun little car is most definitely deserved. I like to parallel the rep.the AE86 has gained with the reputation for handling and driver enjoyment that the Alfasud Ti gained- both were based on garden variety models, both provided a level of motoring enjoyment/enthusiasm that transcended their effectively low budget underpinnings.
So the fuss in that sense is quite understandable - the AE86 is a car that is capable and as such is popular for being so. People pay high prices for capable cars and capable cars you'd think are likely to have a higher demand due to their attributes! Personally I wouldn't pay the money some are asking but yeah....
Classic status it does not and will not ever attain in my opinion. Cult classic, yes.... but a true classic it will never be, the WORLDWIDE fanbase for the car is too limited, ie. cars like Ferrari's almost become classics by default due to their pedigree.... disregarding a handful of rare cars (ie. 2000GT etc) it's not overly likely you'll be able to make at an appearance at a Concours d'Elegance in most Toyota's let alone an AE86 and have classic car afficionado's drooling over it. Neither do I think, will there be a movement to restore a heap of AE86's (or AE85's hahahahahah) to original showroom condition, as seems to be the case with a lot of cars considered to be "true" classics.
Like the KP Starlet's (which in my biased mind provide the same thrills at a lower rate of knots
), the AE86 will always be destined to be a cult classic.