Yes, in a commercial setting, styling and image have always been very important factors in motorbike sales. People choose to buy something based on many aspects. I suppose there's a balance between many things, like styling, function, costs, longevity, availability, ... But always the consumer's perception thereof, which is influenced by advertising & framing.
The balance depends on the application. For instance in race bikes, like MotoGP bikes, the full focus is on function: anything to win. There will always be some style etc, but the focus is on being competitive. Commercially sold MX race bikes have a similar focus on function, but there cost too is important - you have to sell them. In bikes like the Triumph Rocket, or to stay closer to home: the Ducati Diavel (an obvious direct descendent of the DKW Reichsfahrtmodell), the balance shifts strongly to style, thus trying to serve another part of the market.
Obviously I never lived in the DDR, but I understand things were different. The State decided what was available, and when. There was less choosing to be done, at least not by the mere mortals. And certainly not on style.
For the record, the 1928 Diavel from Zschopau: