Only the frames are made in Brazil, on CNC machines. The slides and internals are made and assembled here then mated to the frames. I don't think increasing frame production is going to send quality into the crapper. The third shift guy is pushing the same buttons the 2nd shift guy is.
I heard a different story over on 1911.org about the scarcity of S/A 1911's. Basically S/A is selling guns so fast they can't keep up with the orders. The profit margin on XD's is much greater than on 1911's so they are focusing on getting out the XD's while the buying frenzy is in still hot. When the inevitable AWB is put into effect, the 1911's will be unaffected so Springfield can go back to cranking out 1911's. This was per a conversation with a Springfield rep that a guy posted on the other forum.
My local gun store is trying to charge me $925 for the L/W Champions they have, but no one else has one so I am trying to find a used one before I have to go in there and bend over the counter!