There is still a law of diminishing returns. I agree, neither will turn out "better" knives, I have no problems with the KMG, but having run both I do like the Bader better. I own and use a Bader, I've been using my mentor's Bader and KMG side by side for a couple years, there's nothing about the KMG's structure that makes it better to me - it's a stationary tool, it only has to be rugged enough to get the grinding done, anything more just doesn't serve a purpose.
As far as the Bader being a "light duty" machine, there are a lot of heavy use machine shops out there that might disagree with the statement. There are also a lot of knifemakers who would. My grinder is 25 years old, still running on the original motor and parts other than the leaf spring upgrade.
It's easy for us to forget that beyond these Internet forums, there have been guys making knives on Bader equipment since the 70's and they are known for having outstanding customer service and outstanding equipment. How many of knives did George Herron turn out on Bader equipment? Probably more than everyone who regularly posts in shoptalk combined. How many other names could we drop that have been using Baders since before Rob was even thinking about building a grinder? Steve Johnson, Gil Hibben... a lot of great knives have been turned out on those machines and I've never heard anyone say "I sure do like my Bader, I just wish it wasn't so flimsy".
Ed - the way I recall it, you had specific grinder needs that Bader would/could not meet and Rob did. You also had one of his first few grinders when he was trying to get business momentum. Also, I just priced out a single speed 1.5HP Bader vs. a single speed KMG, with similar equipment the price difference is $250.
I don't have any problems with the KMG, many of my knives have been made on one, but there seems to be some Internet bone to pick with Stephen Bader Co. that just doesn't line up with my personal experience and that of the many knifemakers that I know.