Well, I'm new to this so my response may be somewhat different than most peoples here. Some things I've noticed in the 4 months I've been at this hobby:
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Just my 2 cents.
That's a lot of very strong (not right or wrong, but strong convictions) opinions for only being in the hobby for four months.
Your "rolling eyes" emoticon for things being made of plastic, I hate to tell you is true for 90% of the new product too (with the exception of steam engines, which are nearly all die cast), so in your eyes it must all be crap too, I guess? Die cast or other metal construction for non-steam engines or rolling stock is the exception, not the rule here.
A lot of people consider $15-20 a fair price for a piece of rolling stock if it's in nice condition, I believe your expectations there are out of line, even if it is something from 25 years ago. (If it's beat up or heavily used then of course it's worth less) If you don't like anything PW, MPC, LTI, or other more recent flavors of Lionel up to the present, you are just not interested. That's different than it all being "crap". Believe it or not, there are actually people who like O-27 sized equipment due to nostalgia, it's ability to negotiate smaller layouts, or other reasons.
Which auctions actually sold a whole box of rolling stock for $10? Links (or numbers so we can look them up ourselves since a link may cause this thread to be deleted). I'm calling BS on that one. There is a well known auction house that does a combination of live and "eBay live" auctions, and a lot of those lots were recently (around a week ago) listed as starting at $10, but very few if any actually sold for $10, they were just started as true auctions since the purpose was to move the product. The market decided most lots went for more than the starting bid.
I am also a gen-x'er with the difference being I've been in the hobby since I was a young adult, so around 20 years now. Some of your observations are valid, but many IMO are not. I was one of the youngest people in the hobby when I started, and I'm probably still in the youngest 20-25% of the hobby. Your comment about Lionel being out of business in the next 20 years will have nothing to do with the perceived problems you are citing. They are generally making what people are voting for with their wallets. The QC issues with remote manufacturing may eventually have significant impact, but for some reason a lot of O Gauge customers are very forgiving in that regard (shipping back to importer for repairs right out of the box, etc - but that is not exclusively a Lionel problem by any means).
I won't post links to other auction sites (for the reasons mentioned above) but you can browse through Live Auctioneers, Invaluable, Goodwill Auctions and many many more. I see these all the time.
My comment about Lionel being out of business in 20 years was based on the fact that the few train shows I've been to are dominated by boomers (think 90 ish %). If my observation is correct which I hope it's not, there is definately a demographic time bomb around the corner. Regardless of current gross revenues, if there are no new customers coming in, your existing customer base eventually begins to decrease. This holds true for any business. Is Lionel becoming the Buick of model railroading? Maybe this is why Lionel's prices continue to climb and climb. Fewer customers and fewer units sold = higher prices to sustain overhead etc...
You state: "A lot of people consider $15-20 a fair price for a piece of rolling stock if it's in nice condition, I believe your expectations there are out of line, even if it is something from 25 years ago. (If it's beat up or heavily used then of course it's worth less) If you don't like anything PW, MPC, LTI, or other more recent flavors of Lionel up to the present, you are just not interested. That's different than it all being "crap". Believe it or not, there are actually people who like O-27 sized equipment due to nostalgia, it's ability to negotiate smaller layouts, or other reasons."
I have no issue (unlike some folks here) with an individual placing a value on something. What you or I may deem something is worth may be completely different which is ok. I'm just not understanding how toys built in the 80's and 90's that retailed for probably $40 are selling for $20 to $25 today. And I'm referring to the mass produced traditional sized rolling stock and not locomotives or special editions runs etc...
Notice that I did not place the newer full scale Lionel rolling stock in with that blurb? I consider those to be more, well model like and of higher build quality.
You also stated: "so in your eyes it must all be crap too, I guess?" Um, no. I was simply referring to the fact that it was plastic so therefore had a cheaper manufacturing cost than if were metal.