Budget models have been around for years, it is not going to stop. It is a business practice based on marketing & sales opportunities. It doesn't seem to have hurt anyone's desire to have top of the line spec Fender, Conklin, MTD, PRS, Drumworkshop, etc etc etc nor does it seem to have affected their profits. Ernie Ball did a turnaround and decided to pull the plug on their budget line, as did G&L. You can be sure it was not due to letters about loyalty to US made insturments. What are the fans going to do? Burn their US made instruments in protest against budget offshore models? No. They bought the Sub Bass, the OLPs and the G&L Tributes.
Mercedes Benz and BMW also make budget models. Some companies disassociate their main brand by using a different name, e.g. Toyota created their luxury marque, Lexus. Fender do it donwscale with Squier. Marshall did downscale with Park. It is a marketing decision, usually made on the basis of pecuniary judgement. I doubt emotion and brand loyalty has anything to do with it, particularly if sales are final and not continuous.
FYI, I have a Korean made Conklin Groove tools. It cost me $700USD. It is a very good instrument, and amongst the 20 odd basses I have it has the best low B. FYI, it is the real thing, it is a Conklin designed bass. Will I buy a handmade Conklin? If one comes my way and is what I am looking for in touch and tone, yes. I don't think about brand loyalty, and you can be sure the brand is NOT thinking about my loyalty or lack thereof when they make a business decision. Business decisions are made on a forecast of possible income, not on the emotions of previous customers.