The ick factor on fake bricks is gone. There are still some of the bottom barrel producers that have poor clutch and an oily feel (similar to Megabloks), but across the board you'd find it hard to notice a difference in quality without looking for the logo. I've come across a ton of them while sorting, and previously I could just tell by touch... but now I have to actually look at the studs. The quality really changed when Lego opened facilities in China for production, as they steal and copy everything they can get their hands on. It probably didn't take until the end of the first shift for mountains of data to be provided to the other companies there. It's never going to be 100% as good, but 95% is still an A, and the vast majority of people are going to be happy with it.
It will never be lights out for Lego though, as they still sell multitudes more product, and many people are so absolutely brand conscious that they'd never buy anything else. And the move to China only helped Lego grab a footprint in a multibillion person country, which has its own brand conscious people. If you recall, around the time of the move the news was full of "China's growing middle class", and how the "China middle class will surpass America". If they had to give up trade secrets to grab that market, they knew who they were making a deal with.
It's going to hurt resellers more than anyone, as the bootleggers keep sets in production for years. It doesn't help that Amazon will display bootleg sets right next to genuine sets on search results. As the reseller price rises, and the bootleg price stays the same, you're going to have more people taking pause and digging deeper.
If I'm looking at having a UCS star Destroyer, am I going to spend nearly 4x the price for 2.5x less parts? This is the question our buyers will be asking when seeing these side by side.
6x the price for 2.4x less pieces?
Our customer base is getting old, and the replacements are overall not nearly as brand attached, nor are they going to have the disposable income of the previous generations. And Amazon is just blatantly telling them there are other options out there, and to "click here" to explore more.
I've bought bootleg animals/dinos for my kids that Lego hadn't produced yet, and it's hard to tell the difference. For example the styracosaurus and pentaceratops feel and clutch the same as the triceratops. Had a brachiosaurus for years now, as well as countless zoo creatures that Lego is still catching up on.
You also have MOC artists on rebrickable licensing their designs directly to MouldKing and other brands, as they pay out a lot more than selling instructions on rebrickable. I suppose a lot of people "like" designs but rarely buy the pieces once they see the part cost. Now you can get your MOC instructions and parts in one transaction, for 1/4 of the cost of sourcing them yourself. I don't blame the MOC designers for making money, but it directly affects part resellers.