When I was in college and just after I graduated, the majority of my bags were KS. I haven't looked closely at any of the KS bags in a few years - I've been purchasing Coach and M by MJ and most recently, Kooba, RM and Tano.
One of my first "nice" purse purchases was a Black Kate Spade Wellesley. I was a little disappointed with the quality and actually emailed katespade.com about concerns I had about the purse. The lining is a very thin cloth in the "dot noel" print and is very loose. I was also a little put off by a cheap looking tag on the inside of the purse that said "Made in China". Now I know that a lot of nice bags are being made in China but at the time I thought "I spent $400 on a bag made in China". I guess I was under the impression that Kate Spade actually manufactured their goods in New York or Italy. They did not respond to my email, not even a generic/automated response.
The handbag itself is sturdy and nice looking-kind of that boxy tote style that Kate Spade tends to favor. I occasionally go to katespade.com to see what the current season is, but I think there are a lot nicer and interesting bags out there.