As the thread suggests there's no definitive answer, it's all down to opinions.
But....I would probably say it's now heavily used as a marketing term - used often by small builders who can't afford/have no need for CNC machines.
And the term's often used in such a way to insinuate that their product is superior to the companies that can afford a CNC machine..
... and I've owned far too many handmade guitars and been blinded by the superiority hyperbole enough times now to not pay any attention to it.
You can never stock enough un-obtanium when it comes to high-end products. Guitars, or otherwise.
Good use of unobtainium!
I agree. I've played some stunning handmade guitars (own one - Legra, another on the way, costruction is starting now), some that are just comparable with very good production guitars (my dean for example - its a custom shop dean, but its not setting the earth on fire) and have seen (and avoided) some really shite stuff.
Another couple of things that youre often buying into with handmade gear is bespokeness - getting it 100% how you want it, and the experience and skill of a craftsman. I mean how many people round here use BKs not because of the hype (which they no doubt have) but because we've dealt with Tim, and know his expertise and skills to be prodigious? How many people that got custom builds bought it because of the guy you were dealing with as much as the reputation of the product? (I know thats what it was for me with Legra and Bob, and no doubt is with Jonathon and Wez (havent had the pleasure myself, save on the boards)). Thats all part of the "Handmade" thing - whos hands are they??