"So why can't the leading manufacturers get it into their thick heads that if they paid a little more attention to quality control so that their products, especially intro-level sets, would be a little more bulletproof, or in other words make some investment in their own product, they could insure their future?
This is just my opinion but I think that the lack of quality control and the large retailers perception that the toy train/model railroad product is unreliable is responsible for the overall decline in the hobby and NOT the aging of the population of hobbyists."
As one who has bought many starter sets over the years, I have had not one single defective set from any manufacturer. Not the first set I bought, but the first Lionel set I bought was at K-Mart: one of the typical 4-4-2 starter sets that I purchased over 22 years ago and still runs today. I find the quality control totally acceptable on starter sets, and this is coming from someone who buys and runs them!
If you don't like so much plastic on your trains, then there are other more expensive alternatives such as MTH and Williams by Bachmann. But again, plastic components are not indicative of poor quality. That 4-4-2 steamer I got at K-Mart has plastic gears and is still running with original gears, as with every single other of my similar quality locomotives.
Yes, there is more plastic in many starter sets, but that is not an indicator of quality control. And yes, there are occasional threads here about a starter set not working, but given the much higher numbers of starter sets produced, these are a very low percentage. Train dealers I have talked to over the years echo this: Very few starter sets are returned for out-of-box defects.
The more expensive high-end stuff appears to have much higher defect rates with much lower production runs, meaing a higher percentage of defective product. But then again, there's less to go wrong with a simple starter set. Needless to say, the early production CW-80 Lionel transformer was a standout defect for Lionel. But Lionel made good on that problem by replacing them. Not good to have a problem, but good to take care of the problem.
I applaud Lionel for making a real concerted effort to get back into big box retailers. If MTH starter sets are such better quality than Lionel (and they are, but they are more expensive too) then why weren't they more successful when Sears was selling MTH starter sets? And why isn't Sears (and now K-Mart) still selling them?
The reasons for big box retailers not carrying trains sets has little with quality control or defect rates. It has more to do with economics, consumer demand and retailer expectations for sales and profits.