While I'm not quite ready to pull the plug on Sears just yet, I'd be a liar if I said that I havent noticed the quality of some of their tools has gone down. Their wrenches seem to be about the same as they've always been and their vice grips are still made in the USA, but their polished ratchets are a complete 180 from what they were just a few years ago.
I had one of the polished, slim profile 3/8" ratchets where the square socket adaptor had snapped off of the head of the ratchet. I took it in and got a replacement. The difference between the two was like night and day.
The one that broke I had purchased in 2004. The chrome plating was very well done and the handles were nicely engraved with "CRAFTSMAN" on one side and "MADE IN USA" on the other. The replacement's chrome plating looked cheap and rough by comparison. The engravings on the handles looked like they were engraved with a rusty nail. It had the Craftsmen logo on one side but on the other side, "MADE IN USA" had been replaced with what appeared to be a stock/catalog number. The final thing I noticed is that the ratcheting gear didn't seem as smooth and fine (like a Snap On) as it did on my original ratchet. It was rough and clunky, like it didn't have as many teeth on the gear.
The replacement ratchet works, but it literally feels like I should have gotten a partial refund with the replacement as the quality was not the same.