Jack - I think that we agree on the result of having inferior quality, but not on the timeline. For most of the people here buying frequently new watches of this brand the (long term) quality won't matter, as the issues arising will only show after some time. The less you wear the watch, the longer it will take for the issues to show up. But even for a "frequent wearer" of IWC watches, the delay will be at least 7 to 10 years - the period until the watch first comes to a service. Now, looking at the average time senior management is in place in companies like IWC nowadays, I don't think their main concern is how the perception of the quality will be after that lifespan of 10 years. Their main concern is - and this is what they are measured against by the group - the margin they are able to realize on the products sold and the total value. It is all about incentives - IWC is no exception here.
Having said that, it is possible to produce a heavily reliable, mechanic calibre with high quality standards, four days power reserve, quite antimagnetic and 100% swiss made for a price of less than 50 USD, even being completely produced by robots and meeting COSC standards. SISTEM 51 is the example for it, and I consider this product as a revolution. But to accomplish that, there is the need of investments in the right place, research and interest to do so by "entrepreneurs", resulting in absolutely no necessity to buy movements from other manufacturers.