Understood. Yet, that shouldn't stop them from providing a competing line-up. Danaher also produces competition for Sears in the form of Kobalt, even if I personally don't consider it to be serious competition (it's loads better than Home Depot's line-up, though).
I think they try to be competition with the big names, but it doesn't seem that they ever were. They don't have a decent store-based distribution channel, and they don't have a truck distribution channel. It would be interesting to see them try the latter route, given the issues that it sounds like Stanley has been having with the Mac brand, but that seems like it would be a real tough nut to crack.
As mentioned, I'd really like to see them at the local chain store level, with a deep product offering - I'm just not sure where they'd have an opening. Home Depot isn't going to chuck out Husky, and Lowe's isn't ready to get rid of Kobalt. Walmart has it's Stanley stuff, and the price point wouldn't be low enough for them to take it on. Not sure if I could see Target as a purveyor of mid-range tools, but maybe? Perhaps Kohl's, which seems to be sprouting up new stores more often?
Barring that, maybe a national auto parts chain might be a good idea? I don't see NAPA or Autozone getting rid of their lines soon, but perhaps something like O'Reilly/Schucks/Checker/Kragen? They appear to be consolidating under the O'Reilly banner, and don't really have a "unique" brand of hand tools, or a decent line of them yet.