"do people really do expect perfection in a production knife? "
Sure they do. Especially retentive knife nuts.
Is it reasonable. Absolutely not. The knives are made by humans. Swiss army knives are made by machines and are almost perfect. If you want a "traditional" pocket knive, it should be made by humans, with natural material for covers and thus will never be perfect...man and natural products are by nature imperfect.
The question to ponder is how much imperfection will a company tolerate and how much will their customers. Most GEC knives are too imperfect for me to ever buy...I hate sunken pins and consider them flaws. Many of their designs I consider "imperfect" because they are too thick and clunky...best example is their poor excuse for a toothpick.
The subject knife was obviously perfect enough for GEC or they would not have released it. This is not a failure of someone's "work ethic". To say as such a thing is insulting to the person who made the knife and their company. If a knife is flawed, this is could be due to the design, the materials, the production process, the finishing process or the final inspection...not due to a poor work ethic. These knives are not made from scratch by a single elf
There are those who always say "a few escape QC even in the best of companies." This is BS. Quality is from design to delivery, not just the QC step. A QC inspection is only to catch problems, not prevent them. Every company has an allowable failure rate and inpects just enough to cover this rate. When a company says "that one must have slipped by" they are lying. What they really should say is "we are not perfect, we are not making heart valves, for the cost/design/market some imperfections are expected, if you are dissatisified, we will try to help you."
For me, a knife given to me by a friend, wife or child is special and I will put up with a lot of imperfections as long as it is functional. A knife that I buy that is marketed as being top notch...Case Bose, I expect a lot more, but I don't expect the seamless bolster/liner that one would get from a custom. I've sent back a Case Bose for a cover that separated from a liner in high humidity. A regular Case, I'd expect a decent edge, good walk and talk, minimal gaps between liner and spring, no gaps between liner and cover. Any flaw I can fix myself, I will. I've never had a Case, Queen or S&M that was so poor it needed to be sent back. I've almost sent back a S&M due to an obtuse edge...but I fixed it myself. I have one Queen SFO with small gaps between the spring and liner, but my wife and son gave it to me and it's beutiful in all other ways. I have seen Case I would not buy.
If you want perfection, don't buy knives sight unseen. Go to a Brick and Mortar, gun show or knife show.