CRKT does get some awesome designers. Seriously, when I found out that they're making the Richard Rogers production knives, I was both excited (Richard Rogers productions!) and sad (from CRKT). As someone said, Boker takes a similar approach.
I don't think it's quite that simple - with that approach you'll wind up with nice materials, poorly put together, with much higher prices due to the high reject rate. Quality needs exist across the entire value chain, which means better equipment that can maintain higher tolerances, better trained (and motivated) employees, etc.
I'm not familiar with CRKT's corporate structure - how much they own their own manufacturing capability, vs. outsource - but I don't think it'd be impossible for them to pivot. Possibly under a sub-brand that doesn't carry the same stigma. I certainly think they'd sell well.
That's a large reason why I'm somewhat excited for Alliance Designs - well-made production versions of very nice custom knives, orchestrated by someone who apparently gives a damn about the end product, and not just the profit margin. Seriously, where are the Alliance Design collaborations with Richard Rogers or Jon Graham?