I can see both sides of the argument, but in the end I come down more on Smith's side. Mainly due to their great customer service.
I have had recent service on my model 36. I made several phone calls and had a real person on line in about one minute. They were very knowledgeable, answered my questions, and sent my pistol back on time with the work (re-finish) completely to my satisfaction....they did a great job.
However; I will agree that it is good to have a gun company run by a gun enthusiast, like when Bill Ruger was alive, as opposed to having a board of directors...bean counters. I hope that Smith understands the need to keep their quality control high. Bottom line for me, I would still buy another Smith today.
BTW, I also own a Smith model 60 that has been great. I guess I should add I just sold my Taurus PT945 semi to fund my purchase of my Glock 36. The Taurus was good for reliability, It was just not accurate...for me anyway.