s&w sold the rights to use their name on knives and other products like flashlights and generally crappy police type gear.
Exactly, you're buying a brand name. If you can happen to find one of these on some of the wholesale sites where they drop from the insane MSRP down to under $20 then it's not really a big deal, but they're still not all that great. I wouldn't say they're terrible either... I mean, they're better than some gas station folder.
Anyone notice that Winchester has done this too? On the other hand the Winchester knife that I found seems to be much better than the S&W one, and it was $13 retail versus $50 retail for the S&W.