It's important to remember that when the 1911 was designed over a hundred years ago, it was designed to work with full power 230 grain round nose .45 ACP, and 7 round magazines. It was made by one manufacturer. In that original configuration, it worked very well, and won itself quite a reputation.
Eventually, because of its reputation in serving the military, it started to move into the civilian world. Civilians wanted it to do more than just be a reliable combat sidearm. Some wanted a target pistol, so they tightened up the tolerances. Very accurate, but maybe not so reliable. Some wanted to play other gun games. Others wanted to carry the guns the military did, but wanted something or other "fixed," about the original design. The adding larger sights, or a beaver tail grip safety come to mind. They weren't restricted by the Geneva Convention to FMJ ammo, and wanted to use semi-wadcutters to punch pretty holes in targets, or hollow points shaped like flying ashtrays to punch bigger holes in bad guys.
A whole cottage industry sprang up, whereby a consumer could buy a solid, no frills 1911 from Colt, and then have it modified into a bullseye gun, an IPSC gun, a defensive pistol, or whatever else he wanted. Of course some of these modifications worked well, and some did not. Some of the smiths did quality work, and some did not.
At about this time, Bill Clinton and his bunch passed the Crime Bill, which limited new magazines to ten rounds. This took much of the wind out of the sails of the then-new wonder nines, and caused people to take another look at the old warhorse, the 1911. After all, why go to the trouble of carrying around a bulky double stack pistol, if it only gains you a few rounds over the old singles?
With this shot in the arm, the 1911's market share began to expand dramatically. Soon, more and more manufacturers were offering 1911s of their own. And in a competitive marketplace, they had to find new ways of making their product stand out. Better sights than GI! More accurate than GI! Prettier than GI! Ramped and throated to feed hollow points! Extended controls! Higher capacity! Then too, the original was designed when labor was cheap and machines were expensive. Today the situation is reversed. Attempts to reduce or remove hand fitting, and use modern manufacturing techniques haven't always been crowned with glory.
With so many cooks in the kitchen, though, things were bound to slip. Some made quality, some did not. Some made to their own set of specs. Others just made junk.
Then too, a lot of shooters aren't really shooters at all, but gun buyers. They buy a gun, put a box of (gasp! Expensive!) ammo through it, and put it away. These people are quite likely to buy a $350 1911, if it looks like a thousand dollar Colt or $1500 custom. Will they have gotten a good deal?
Anyway, that's how we got to the present confused state of the market.