I just like to say that despite the one or two examples of badly made hand mades illustrated in the thread there is a hell of a lot more badly made "production" shitee out there. I've seen basses where the bridge was so badly aligned that the E string completely missed the pickup, acoustics that were folding in half before they even got out of the shop, a Takamine where the bridge was positioned 4mm too far back, Epiphone Les Pauls where you could stick a 0.8mm pick in the gaps between the binding and the rest of the body and so on and so on.
I was a mechanical engineer in R&D for many years before taking up luthiery full time and I know that machine manufactured items (someone mentioned car engines; a good example) have the capability to be far superior to their hand made equivalents but when the pressure is on to get the volumes out the door to justify your investment compromise is a constant companion. The clips of the PRS workshop, which I guess were included to show that PRS are at least partly hand made, are a classic example. It's basically an assembly job with tight cycle times and machines doing all the "skilled" work. Even with the cheapest Chinese made guitars it is rarely the machine made parts that are at fault it's the design and/or the assembly; with a true quality hand made these errors are eliminated, admittedly at a price.
We're hoping to launch a part CNC machined model soon but we will not be referring to it as "Hand Made".