Hi Jeff,
Your assumptions are most correct, I also had an old Dremel model that did work very hard and lasted me many, many years but and like anything else, it died...!
I have since burnt 3 other Dremels that where the last model at the time of purchase. Expensive like hell, these tools are no longer used to last but, to be replaced as often as possible, this is what our modern society is all about in these days, unfortunately.
An I wonder, where all the Dremels are made today, I'm afraid I know that answer but I would prefer to be wrong.
If I remember correctly, one of the Dremel models I purchase in a local hardware store for about $100 or there abouts and this has to be 10 years or so, was a little black(ish) unit that I don't recall the model that didn't had a start-stop button as such but, a lever that would go up and down and that was the start, at the top and would accelerate as the lever was pushed down until it reached its maximum speed, to switch if of, you would need to bring the lever all the way up.
It lasted quite a while but I pushed it a little too hard and burnt it, by then, they were no longer available and other model has surpassed it, that turn out to be a piece of rubbish, all together.
Anyway, many years later, and while searching for some of these type tools, I found someone in Japan that was advertising the very same unit that I just mentioned about that worked quite well for me, it was offering free shipping and the item was priced at AU$28.00
The most amazing thing about it all is that, it has the "Dremel" name on it, exactly the same as the one I purchased in the local store, I got suspicious about it and decided to buy one, just to have a look.
About 3 weeks later the unit arrived and I checked it out and compared with the old one that I still had packed away, they looked exactly the same, I'm telling you. I started using it and after 12 months the unit was still working perfectly so I decided to have a look as see if the eBay Seller was still selling them, we was in fact, and at the very same price as 12 months prior so I order 3 more, this was about a year ago and the original is still working fine.
To be honest, I don't know how good they are/torque in low speed, I use these tools always at their highest speed, many chainsaw chains sharpen with a diamond round head and hundreds of bandsaw blades sharpen with the heavy duty grinding disk. These are where the tool most get used but, I used it also in many wood working projects, such as removing wood from rifle stocks in preparation for bedding and barrel floating, just to mention a few uses.
I just checked I the seller no longer has them available but, I had the listing saved under my Sellers purchases, you may find someone else selling them, I don't know so, here it is;
Cheers
George