This isn't just an issue about things not being handmade. The ornate victorians with lots of flourishes were actually assembled from mass produced pieces. This is about architects intentionally turning away from beauty, because they believe the world is ugly, and their architecture needs to show this 'truth'.
Check out the famous debate between Christopher Alexander (traditionalist) and Peter Eisenman (modernist) in 1982. They were discussing a modernist arcade by Moneo, pictured here:
http://forum.woodenboat.com/showthread.php?228787-quot-A-Pat...
Moneo's arcade is intentionally designed to be uncomfortable. It does not provide any shade. It does not protect well from the rain. It is not human scale. It draws attention to itself. It is intentionally jarring and unpleasant.
In short, it does not fulfill the traditional role of an arcade, which is as a shaded, quiet place from which to enjoy a garden or public place.
You can read the debate here:
http://www.katarxis3.com/Alexander_Eisenman_Debate.htm
Eisenman basically points out that we no longer believe the "old cosmology" and it's time for a "new" cosmology, one which tries to "invert" or find the "negative" values of the old cosmology. That the world is filled with anxiety and disharmony and so architecture, to be "truthful", should reflect that ugliness. These are intentional design elements to make things unpleasant. It has nothing to do with labor costs or expense. Modernist buildings are not cheap, and when you take into account that most of them are disposable and have huge maintenance costs (due to being made of concrete rather than brick, and not taking into account those old fashioned things like putting eaves on windows to limit water damage). In other words, there is real sadism here. Intentional unpleasantness. A desire to inflict punishment on the masses.
There is a nice write up here: https://www.currentaffairs.org/2017/10/why-you-hate-contempo...
Now compare this to the medieval cathedral. Only a fool would think that modern life is more unpleasant than medieval life. But they built aspirational buildings to capture the beauty of the divine. We make buildings to capture our longing for self-annihilation. We are surrounded by life and long for death. They were surrounded by death and celebrated life.