Fatercat – to answer your question; IMO there’s enough people in the good ole USA that will keep the semi-custom & custom 1911 gun shops in business to the end of time.
Scibaer – to answer your question; IMO it’s the same reason an individual will purchase a revolver made by John Linebaugh, Dave Clements, Hamilton Bowen and others or high-end production models such as Freedom Arms etc.
Les Baer will guarantee some of his semi-custom models to shoot a 1.5 inch – 10 shot group at 50 yards. I don’t know anyone that has or can shoot that good off-hand to take full advantage of that type of accuracy but you can get it if you feel the need. For those who compete, they have a need for a pistol that shoots bugholes, as it takes the pistol out of the "excuse" list and that also goes for the beginner or novice shooter but without the "need". Others like Wilson, Brown etc. will build some semi-custom models that will shoot 1 inch or a little better at 25 yards.
The full blown custom 1911’s will shoot 1 inch or a little better at 25 yards but they are put together by a talented craftsman one at a time and there’s a lot of attention paid to detail and that’s what you’re paying for – their talent & time.
Pride of ownership may also come into the equation and the way I see it – that’s a good feature, as we earn that pride, as for many of us it’s a fulfillment of a dream or quest.
I’m retired but occasionally find the odd job for a little extra cash, so I’m not well off financially by any means, but I’ve been able to purchase both new and used handguns made by Baer, Bowen, Jim Clark, Clements, Harton, R.L. Shockey as well as BFR, Colt, Ruger and Sweat & Miss ‘em. Why the semi-custom & custom handguns – for no other reasons than I like quality workmanship, needed the accuracy for "past" competitive events and I just wanted that particular handgun.
Every now & then I still question myself, as I massage my wrist, as to why I “needed” that 500 Linebaugh Maximum made by David Clements - but it just seemed like the right thing to do at the time.