Sears isn't going offshore because of the occasional return of a of a rusty ratchet that cost them less than $2 to have made. They're going offshore because most consumers have sent a clear message that cost and quality trump COO, and because rising costs to manufacture in the US are making it difficult or impossible to compete.
Look at Gearwrench: finish, strength and fit on par with Craftsman, but at half the cost (real prices, not the jacked up retail nonsense) and with better quality control.
Look at consumer electronics. All made offshore, and we buy it up. Why? Because it's great quality and affordable.
When was the last time you looked at COO when buying clothes?
Sears is a business trying to survive in a changing world. They are not a high-end boutique. Their clothes are not Lord & Taylor and their tools are not Snap-On. Their competition is commodity stores like Walmart and Amazon.
And like Walmart and Amazon, they know that a satisfied customer will result in more sales. Walmart will take anything back, knowing that when you leave the return line you're then going to go fill your cart worry-free and buy buy buy.
Like Jazz and many others here, I'm a huge fan of USA-made Craftsman, and have been very happy to buy tools made by my fellow countrymen. I've been buying Craftsman since the 80's (and still have almost every tool receipt). I've returned very little, but their return policy makes purchases worry-free, so if I'm unsure, I just buy it.
That said, other brands have started to occupy spaces next to Craftsman in my toolbox for quality/cost reasons, like Earthquake-Taiwan impact tools, Gearwrench-Taiwan flex wrenches, and Wiha screwdrivers.
It is very sad to see the made-in-USA stamps disappear, but more is coming, and it has nothing to do with Craftsman's warranty or the return of a $2 ratchet.