I don't know about the pricing thing - I feel like we're seeing lower prices relative to the quality we are getting. Cold Steel, Zero Tolerance, Kizer, Reate, and many others seem to really be stepping up the game without really stepping up the price point. Case in point: you can get a -range- of 204P bearing-pivot folders for under $300, you can get 110V folders for under $150, and you can get S35VN for under $100... And these are all from known brands with warranties and good customer service.
The advances we're seeing in production technology is promising from my perspective; it allows more companies to do more with less expense. Radical designs aren't radical to make, precision engineering is basically the norm now (a lot less talk about "CRK Tolerances" these days...), and the materials available to us are outright mindblowing.
It's partially because of these advances that Kershaw's seemingly rapid decline is almost a complete mystery to me.