The fabrics are not really "that bad". They are still Super 110s fabric to start. Imo it still is a step up from J.Crew, with all due respect to J.Crew and suits of a comparable price point. (J.Crew sometimes uses Wool Blends on its patterned fabrics).
Depending on fit preference, which is also critical, the slimmer fit may be better for someone or not.
The new Blue Label suits are a fair OTR value proposition, especially when they are on sale as they are indeed half canvassed and use Italian S110 fabrics. It's also still a Corneliani constructed product (albeit not made in Italy).
However, for those who are used to Blue Label of past the price difference of several hundred dollars includes missing details; really depends on how important these details are to you.
>new blue label suits have partially lined pants as opposed to being fully lined to the knee (old blue label, BL, PL)
>half canvassed but the quality of canvas itself is not the same as before
in sum, usually the internal components and construction that differentiates suit tiers; especially in a time where even sub $1K suits can now offer great external features such as decent fabrics, (largely) cosmetic sartorial details, horn buttons and Bemberg linings.