Its also interesting to think about the guitar "world" as a whole. The rise of "Custom Shops," relics, not to mention the growth of "Boutique manufacturers" in the instruments and amps. I'm not familiar enough with, say, reed instruments, to know how much of that "Made in small quantities, just for a discerning musician" other musicians expect. Certainly, in the automotive world there are the "Tuners" who will make you BMW or Mercedes into something "special."
Pedals are basically simple, and relatively inexpensive for the most part, so I can't see a market for "made just for a special person like me" drying up soon. The dividing line between what "hand made" means—is a hand carved chair necessarily better than one that's been carefully designed to spec, machined, and had hands on it for finishing—what parts do the "hands on" process make special? When I think about early Zvex, to me it was more about the hand painted enclosures that anything else. But how important is how the components are joined together? (And I ask this as someone who uses silver bearing solder, 6-9 solid copper wire w/teflon, etc.)—I will never argue that the component quality isn't very important. (But I would argue that SMT does have many advantages over through hole, just like, for a more complicated circuit, I'd go for a PCB over vero or dead bug, (even though the latter is dear to my heart.))
I think a lot of it just goes down to a desire to own objects that are not fully mass produced. And as a craftsperson, who earned his living with his hands, I can't argue against that.