remote peasants... Why you think they exist? As far as I know, major model factories situated in big cities. You could use google earth to see it knowing factory address (I did).
what I really wonder (and failed to receive understandable answer) is why they omit plain wood kit production. We know that in past Japan was known to have alot of cottage factories produced alot of nice kits which are still popular. Why chinese don't try it?? Chineese guys I talked to simply do not understand what is unassembled kit.. I'm pretty sure that they could make good money from it even selling directly from China because shipping size/weight is much less than for ARF.
about RTF and kits competiton. I think that things are easily understandable if you imagine how much interesting things young guys have nowdays comparing to say 20 or even 40 years ago. Computers and video games attract them, while kits are 1)have poor selection 2)inadequately expensive. Am I right that in 1950 young person was able to save 15 cents from school breakfast and take a Comet kit? (Of course not Cleveland. Is it possible today to find comarable wood kit + tools and accesorries needed to build for same "one school breakfast" money?

Thank you,
Kostya
P.S. How you'd comment this http://www.philipnoel.co.uk/product%20list.htm