You are right, Cliff. That master kami you see edging the 20 inch Ang Khola (that might be the one you have) will never touch a scabbard, nor will he make a bolster and buttcap. His value lies in making that blade the best that can be made. And, herein lies the difference between the HI khukuris and the village khukuris. The village kami will be a master kami of varying individual skill but he will have to make everything himself and just because he can forge a good blade does not mean that he can sew leather or work beautiful brass.
And, Will, take a look at Nara's shop. It has less then shop 1 but he will put out a blade that is as tough as an HI blade. It won't be as polished but it will do anything an HI blade will do. As Cliff pointed out correctly, it is a matter of skill and attitude.
The advantage that shop 2 will have is some power tools. Kami has lived in the US for perhaps a year total and knows how to use a power drill, grinding wheel, and other small hand power tools. It will be a great help.
Uncle Bill