Genuinely curious, since I still shop there. Prices aren't the best but I like the selection and the return policy. Plus the salesdroids actually seem familiar with the gear.
My last REI hiking frame was a huge disappointment, it started to have welds cracking after 40 fairly easy miles. They do still have a decent warranty policy, but if I'm up in the wilderness that doesn't do me any good, I just want the same quality as they used to have (I.E. I have inherited gear that is still good after years of abuse, but have bought gear that has worn out in 3 years).
As far as superior competitors, unfortunately they are hard to find. I've had the best luck just searching for army-surplus equipment on ebay, as all the army surplus stores seem to have disappeared. But for apparel, definitely look for vintage Woolrich or wool milsurp. It's scratchy, but that's what undergarments are for, and when you accidentally slide down 200' of snow and get covered it's absolutely the best, none of the more modern gear I've tried even compares.
I also grew up backpacking with external frame packs, PMS boots, and scratchy wool shirts. My current outfit is nowhere near as durable, but it's 5-10 lbs lighter. Thinner nylons, smaller zippers, internal frames, synthetic boot materials, lightweight fabrics, etc... the weight has to come from somewhere.
I still have my old Kelty external frame pack. I haven't used it in 20 years and I probably never will again. It's just more fun traveling with less weight. If that means I have to replace gear more often... it's worth it.
I remember balking at the $110 price tag on a Craft long sleeve running shirt about three years ago. I bought it anyway. I wear it 4x a week from October through March, and it goes through the washer after every use. It's as good as the day I bought it. Best $110 I ever spent.