we're getting too simplistic here... it isn't a matter of buying american or whatever. the consumer decides who stays and who goes. winchester produced a very average gun, and tried to sell it for a price premium. consumers didn't like that, so they bought other brands (eg, i have a few dozen rifles, every one is american made, but only 3 say 'winchester' - the bulk of them say 'remington'). the japanese gun industry didn't drive winchester out. american shooters and hunters did, by buying remingtons and savages by the truckload, leaving winchester out in the cold.
all that said, i'm sad to see winchester go, and it can't be good for the gun industry as a whole or american gun companies, but... winchester simply did not make enough gun for the money. a better gun, or a more competitive price would have had savage and remington scratching their heads... fwiw, now is your chance to watch remington do the same exact thing... they are raising their prices every year (as everybody is), but remington is raising the prices faster than most, and producing the same gun. they are doing the same exact thing winchester did. somehow, i don't see remington being around much longer as we now know them unless they reverse the trend - savage is gojng to clean their clock.