Perhaps, but when it comes down to brass-tacks…or in this case, the fundaments of an instrument…a good piece of wood is still a good piece of wood, no matter what country it was cut in or the price it took to get it into one's hands. One thing for certain, that piece of wood won't care what it cost, it'll perform how it's supposed to.
I agree, but the REALLY good pieces of wood typically get snapped up by builders who are going to use them for higher-end stuff. If you're a company, are you going to pop for the stuff that costs five or six times what normal, pretty decent lumber that everyone else uses for instruments in a particular price range? Of course not, it's a competitive world and you'd go under.
More importantly, however, skilled and well trained labor is what is lacking in the majority of the Asian instrument plants. Yes, construction's CNC'd/automated, but wiring, finishing, fretwork, and setup aren't. There's no reason for highly skilled techs/luthiers to seek employment in those factories, their skill is worth far more than the pittance they can make in them, they move on to better positions elsewhere. Component (pickups, pots, tuners, bridges, etc.) quality is less important because they can be changed, but typically also lacking compared to top-quality instruments from America, Europe, Japan, etc.
Finally, and this might just be the union man in me, but I do absolutely everything in my power to never buy any product, at any price, which wasn't made by people who were paid a decent living wage and treated with respect and gratitude for the valuable work they put in every day. That's my personal stance, and doesn't really have to do with quality but does affect my enjoyment of the product.
There are totally decent instruments out there for under a grand, even some damn good ones that a player could absolutely earn a living with, but I've never played, handled, or heard one that could compete with a $1500-2000 American, European, Japanese, etc. instrument. After all, if there was no advantage, THOSE folks would be going under because they couldn't sell their much more expensive products.