This thread is offering alot of interesting insights, and Mike's post is very thought-provoking. I will try to share some thoughts as well.
I agree that 100 years ago things were very different. Knives were just tools, and cosmetic flaws were never an issue. A man had one knife, and the only thing that mattered was that the knife could cut, and didn't break apart. A chip in the horn handles, or a color mismatch, was just something that most people wouldn't even notice.
Nowadays, knives have become something different. On one side, they're still used as tools, and the ones used as tools still obey to the same 100 y.o. rules...but they're not the same knives. Most knives that are used are tools are box cutters with replaceable blades, or inexpensive modern folders, or (in the high end of the range) SAK's or Spyderco/Kershaw/Ontario one-handers. Why? because they cut, they're relatively cheap, they're consistent, and they get the job done. Box cutters also spare the users from the trouble of sharpening (and getting the proper skill for it). Aside from a bunch of us, who like a certain style of knives (with natural materials, old school patterns, and some style), slipjoints have a very tiny part of the users market, and that is not going to change drastically any soon.
On the other side, slipjoints and such have entered a "new" market (which did not really exist 100 years ago), of people that like knives (and use them), and can afford to buy knives like Queen, GEC, and so on. This is us (on average, of course).
This is the reason why we are picky about knives: they're not just tools for us, they're something more, and that's why we demand for "perfection" (or rather, high quality). But clearly we should be prepared to pay for it, and factories struggle with this market, and either they give up on natural materials and old style knifemaking (like Buck), or on pattern variety (Canal Street), or on sharpening and QC (Queen, GEC), or they just keep their price up (Laguiole's, for example).
One thing is demanding for the best possible quality at a certain price point, another thing is wanting everything at a low price point, and with old equipment to make those knives fully traditional...which is probably (as Mike pointed out) a bit beyond the reality of the companies' business.
If we want all that, we should probably be ready to pay a little more for it, and keep our expectations up.
Or, decide that certain flaws (especially cosmetic flaws) are just a part of the game and get back to our ancestors' point of view.
As for me, if I used knives in my job, I would certainly belong to the second group...but I use my knives casually, buy very few of them, so I like to choose them carefully, and I'm ready to pay for it, as long as the factories fulfill my "standards".
Fausto
