Mike, quality is a moving target, and as you stated, means different things to different market segments.
In terms of tools, there exists several market segments. A professional tradesmen will have an entirely different definition of quality than a hobbyist. And then you have everyone in between.
The larger point I was attempting to make is that consumers and investors have polar opposite needs.
Certainly the examples you listed where sheer economy of scale result in lower cost and higher performance. But that model seems to apply to industry where markets are growing. When it comes to established and mature markets and products, consumers demand a high return on their investment. They want to pay a certain price for a pair of shoes and expect those shoes to deliver adequate or better fit, comfort, performance and longevity. Manufacturers can only go so far in streamlining manufacturing processes, thus reducing cost.
And, manufacturers are competing in two markets. Consumer and investor markets.
This whole argument of course ignores the rapidly changing manufacturing paradigm taking place in China, where entire cities exist solely to manufacture socks or shoes or widgets and so on.
In the meanwhile, the surest way to remain competitive in the retail and investment market is to cut expenses. The easiest and most expedient way currently is to cut jobs, shut down domestic operations and move offshore where operating expenses are a fraction of domestic expenses.
We all recognize this paradox. The persons that find a solution to this unsustainable economic model will be this century's Rockefeller.
In the meanwhile, as a hobbyist, I have to decide which tool will deliver the best value (quality) for my investment. Do I put a higher premium on the objective quality of a tool (Baldor motor versus a no-name off shore motor for instance) or do I have a greater value for the features?
There are many perspectives and you bring up valid points. Ultimately, each of us is the final arbiter of quality.
Measure twice, cut three times, start over. Repeat as necessary.