Did Craftsman make their own tools at one time? It seems to me that 35 years ago there wasn't much else out there other then Black and Decker. How many of those Craftman routers were sold out of their catalogue? Hundreds of thousands I am will to bet. Same goes for the table saw.
Craftsman is a name and in name only. Emerson Electric, Ryobi, King Seeley...there has been a mile long list of companies that made "Craftsman Tools, both then and now.
The quality, or lack thereof, never was because of a particular company not making quality tools, it came because the powers that be at Sears decided that lower priced tools was better for their bottomline. They wanted lower cost machines, and allowed lower quality parts to be put into these tools to get that lower price.
Interestingly, you can find this same thing going on today. You can go to a BORG and pick up say a Milwaukee Drill. Unless you examine a Milwaukee drill from another retail outlet, you would never notice that the serial numbers are ONE digit off. This is a unit made exclusively for a BORG to get the price down. The drill will not turn as fast, have less copper windings, have lower quality bearings and not have the torque of the other drill, but few people notice this.
In most aspects, it does not really matter. The BORG drill may be just fine for the homeowner who uses these tools on the weekends or to do a major home project. For the people that use the drill in the trades, it does not really matter either. A drill that lasts say 4 houses "has paid for itself" and thus it is replaced with another drill from the BORG.
The only people that high quality tools made to last really appeal to, are people like us...and unfortunately we make up a very small section of the tool industry.