I watched the old Lionel dying. And cheered when Quaker stepped to the plate. I have ran, owned, loved and hated many many MPC.
The problem wasn't collector grade trains from hobby shops. It was some or the rtr starters.
It was all so different. I didn't care for the colors, plastic knuckles, plastic frames, plastic wheels, and DC only can motor rtr starter sets. (Avoid those or be ready to upgrade it to AC with rectification to DC in the loco( $5) or command or reversing board; & metal wheels for some cars. Oh, and lead sinkers to keep the ultra light, no-metal cars railed if you use more than 4 or 5 cars in a train. Get used to PW up front and MPC to the rear or have the MPC stringlining into derailing on 0-27.
Those DC rtr sets were not labeled well enough and many folks took them home and set them on thier postwar track only to have them let all the magic smoke out.(burn up).
I.e., Lionel failed to educate the consumer that these were not 'traditional' and many folks fumed over it.
I wish it wasn't so, but that was the case. IMO where the quality perception was (rightfully) questioned by the general public (at least here, only 20 min. from MPC Lionel home fyi).
So many got returned that k-mart dropped a nice Lionel operating display (I would run it for hours) and pushed Tyco instead. I nearly went HO seeing more quality and better looking equipment for my dollar. (Alas, I couldn't go through with it though I was very very tempted; near determined.). Even the last Marx sets looked to be thier equal at about 1/6th the cost. If Marx would have just put boogies on them they would have outsold those the second year.
Around 74-78 one of the Patriotic or Bicentennial Alco preorders was shipped with unannouced can motor and even the preorder folks got a major dissapointment. I'm not even sure the can motor had metal, lol. The quality was so bad I watched my Gramps who had collected and pre-ordered Lionel since the 20s or 30s, cry because "his Lionel was dead". Gramps was an ordering hub, a "basement distributor" who Lionel also sent a couple/few "dealer only" thank you engines (one there are only 6 of period) .. He stopped preorders seeing MPC as a dishonest company he would no longer promote.
It's hard not to be impacted by these facts. MPC did good, but MPC did bad; and when bad they were apathetic. It rubbed off