Warning: Long Post
I, although I make a living in the industry, am in favor of the concept of factory built modules, panels and homes because of the potential for quality improvements. On site with "stick built" homes there is always the weather element and the rush to get a house under cover. Materials that come from the supplier wetter than in years past get subjected to sun and start to do their own version of the Twister game. Guys sometimes hired in parking lots make cuts on elements that will support weight. All these things add up. The Tower of Pisa could have been straightened by inserting a 1/8" shim at the bottom after all.
I live in a 20 year old cape cod home built by someone who cared and became a friend. The design of this style goes back hundreds of years and is IMO one of the most space efficient and proven designs. If I were to start building homes I would take this one design and trick in out in quality - not space - and probably do well. I am however a fan of contemporary / modern / alternative architecture and would happily live in a contemporary house.
Back in the early 1990's I had the title of Facilities Manager of a bank. We decided to open a branch in beautiful Appomattox, VA, about ten miles away from where the American civil war ended. The executives decided to hire an architect and go pre-fab. Two modules were shipped in, dropped by crane over the bank vault and connected. Quick, easy, efficient. Then the disaster started. The architect had convinced the executives to install a modern fabric canopy system that floated above the building and the drive-in and front entrance. This canopy required 42 supports anchored thru the commercial rubber membrane roof. Anyone who has ever done any sort of roofing knows that the more transitions and penetrations you have, the more likelihood for failure and leaks. My guess is the first rainstorm required 37 buckets.
Design and attention to details is the key. Stick built homes can have their issues - my family eats because of them, and a cookie cutter process can in any industry magnify the issues on a grand scale - this is what we do, do many quickly, and then the errors happen on more than one and snowball.
The manufacturing process can reduce the accuracy and quality issues caused by unskilled labor and weather, but it is the designers and those in charge of quality control who will determine the future. Garbage is still garbage no matter how you spell it or create it.
Peter