Actually the Luger was on their minds. While you are right about the Colt and High Standard guns being the preferred .22 plinkers and target .22s pistols of the time, Bill Ruger patterned the new gun to look like a Luger. The Luger had a mystique to it so they picked up on a little of that. The original Ruger had a similiar tapered barrel, round trigger guard, and general shape to the grip frame that is remiscent of the Luger and of no other gun. That the names were similiar didn't hurt either. Ruger and Sturm were both smart fellas. No, of course the pistol didn't need a toggle link, etc. The Ruger was made of stamped sheet metal and a .22. All it had to do was to shoot as well as it's costlier competition and pick up on the fame of the Luger a bit. For their first gun it was a big hit. R.L. Wilson's book on Ruger and John Dougans works make the point on this.
Just as folks today still mistake a Ruger SA for the Colts they were modeled on so some look at a Ruger .22 and think "Luger".
tipoc