German citizen here. I travel to the US quite often - I find that the quality of the Grocery stores is on average one level up. The quality of the goods sold there is another story. But mid-and southern Europe likes it cheap when it comes to these things. There is a reason why we call them "discounters".

I really do hear you on the housing quality - it's ridiculous what people are willing to put up with over there. We have friends living in the southern bay area who pay 3.5k for a 2.5 bedroom apartment in an apartment complex - the whole thing calls itself "Luxury Residencies". Ain't no luxury there. Like you describe everything is built extra cheap: from the walls, to the kitchen appliances and the plumbing. There is a massive top-loader in their supply closet that sounds like it runs on it's own ICE, built in the 50s. In Europe this would be considered a very basic apartment but it's already considered 1-2 levels higher than average and not even 3 years old.

I do think there is something to your Galapagos syndrome theory.