George, this discussion about the quality of Gendaito happened a few years ago, between Alan Morton and myself. As I was heavely in Gendaito at the time this discussion was very relevent. Alan said, that he thought the average Gendaito, had thin skin. At this time, I had managed to aquire some very good Gendaito and so was puzzled by Alans thoughts. This made go on a bit of an iformation hunt. This is when I discovered that Swordsmiths intentionaly make different quality swords. The first part of the puzzle was answered by Yoshihara Yoshindo in his book, The Craft of the Japanese Sword. where he said, he would make swords from sponge steel for Martial Artist. Also, before the Gendai period, swordsmiths would make three swords for the customer to choose from. Anyway, the conclusion is, Gendaitosho didn't always make the best sword they could.
I have seen Star Stamp swords with flaws, both pre and post polish. If they weren't fatal flaws, they were allowed to pass.