Over the years of seeing Interarms Walthers come through qual courses-of-fire, I'd come to accept that it was seemingly a 50/50 proposition (at best) whether any particular example could finish a course-of-fire without exhibiting some stoppage or other malfunction. That was even using hardball loads. JHP's seemed to complicate things even further. Some guns would require repair, too.
The potential for slide-bite, and decreased slide velocity/travel, also seemed to contribute to functioning issues.
I've seen older non-Interarms Walthers that had variable QC, too.
The recall on the S&W production guns may have given them a bit of a black eye for a while, but S&W stepped up and dealt with it as a Recall. They worked to resolve any issues with their product.
A little while back I had the chance to see one of the recent production American made (S&W) .380's come through our range. I liked how the beavertail kept the slide off the web of my hand. I was also impressed by how well it fed, fired, extracted & ejected in the hands of 3 different shooters (including myself). The trigger seemed pretty acceptable, at least compared to all the earlier European & Interarms guns I'd tried over the years.
If the rest of the current production licensed S&W guns work this well, I can see why Walther has apparently decided to continue having S&W make licensed copies for them, even as Walther is going to become their own importer in 2013.
(From what little I've read about their plans for a continued 'strategic alliance' even though Walther is setting up their own company, anyway.)
I still don't care for the PP/PPks design, myself. I prefer something that's not blowback, but that's just me.
They (S&W, for Walther) probably wouldn't be making them if there wasn't still a market for them, though, would they?