Oh, I just posted about this in another thread. I also feel that this is not a good long-term decision for the businesses, it's short-term money. Personally, I don't think that if I found an inexpensive bag by a designer at Target, that I would buy it and move up to the more expensive versions, I would switch over to a more expensive designer.
Anyone remember Halston? Over-merchandised himself with JC Penney back in the 80's. Brands that don't have the same cache that they used to are the ones who lowered their own bar, so to speak: Liz Claiborne, Tommy Hilfiger, Ralph Lauren.
Whether we like to admit it or not, a designer name on something adds to the item. But when it's over-exposed, or brought down a few levels, it loses some of it's magic.
Also, is it really good for a designer when they make a bag of lesser quality that is only designed to last for a year? I buy a bag because of the quality, if you take that away, then what's the point? I love
Coach, because not only do I know the bag is made well, but that if something happens to it they will take care of it. I highly doubt you'll get the same service by bringing back one of these bags in a year to Target to complain about a loose stitch, or scratched hardware.