That just isn't true. German supermarkets in the UK sell a lot products made in Germany at slightly higher prices than the really cheap Chinese stuff. Tools, gardening equipment, furniture, clothing etc. People are happy to pay a bit more for quality.
Absolutely. When a quality American-made product is available that isn't outrageously more expensive, I go with the American made product. Some examples that I've bought in the last year: floor mats, yard rakes, snow shovels, kids toys... When you compare the quality of the Fisher Price toys that were made in America vs. the ones made overseas the difference is staggering. It is a real shame that they went the Chinese route when Little Tykes can made damn good stuff here for about the same price. Also, I'd rather have a shovel or a rake built to last for years that is twice as a expensive as a cheap Chinese piece of crap that will break after one season of heavy use and force you to go out and buy a replacement mid-task.