DB: as a reel adict, I own both.
Both Avet and Islander (and Accurate) have Aerospace machining as the core business w fishing reels as at least initially a side-line. Dunno if you have priced NC 3 and 5 Axis machines of late but w the grade finish we "demand" in Avets and Islanders, ticket to the game is about $250K USD, then add design, programs, cutters and somewhat skilled folks to run them....so to make all that investment payoff - you have to charge a bunch. The China knockoffs benefit from a design and brand that has been established, low labor costs, cheap capital, an artifically low exchange rate funded by Govt and let's be frank minimal environmental, social and labor laws. Still, I love the semi-free market - and yes I benefit from it EVERY day.
I think economy of scale has a LOT to do w street prices - there are a LOT more Tuna nuts than SA Moocher fans - the Islander is not well known South of Seattle (too bad, cause the experience is PRICELESS! As I recall Islander has made some 5000 MR2's. The Avet website shows a pallet load full of reels....
BTW, the Avets are not level winds, they are Lever drags w a very nice smooth and progressive drag. The small SX and MX make superb King reels and are also great for shallow water Hali and Ling. Near 15# of drag provides a great strike hookset. Checkout ifish.net, lots of Avet junkies there...
JD