Well....
It's still sorta happening with JD.
JD had their 'better' models. Tougher, better transmissions, the chassis didnt cut your hand because it was so thin. Today you'd start in the X300 series and work your way up..X304, 308 etc and X500 etc etc
Then you have your L series or D series...those are the box store models but JD dealers sell those as well, maybe not the same model but essentially the same.
For awhile there though, there was a difference between the bottom of the line JD model and the big box store models, the big box store models were less expensive and built as such...that's what tweaked the dealers. Missed sales and then they have to fix the crap.
JD originally dipped their toes into the more accessible consume line via an off brand called Sabre (By John Deere) and also selling some to Scott's and other brands that slapped their names on the tractors.
The Sabre was an amazing lawn tractor, with a beefy transmission that they would NEVER waste their time putting in a box store tractor again. I bought one for 150 bucks and was pulling roots out of the ground with it...back and forth back and forth yank yank yank...hauling tons of gravel, dirt etc and then cutting with a 55" deck as smooth as can be and far far far far far better than even a modern husqvarna garbage can could today. Alas, I left the air filter off and didnt realize it through winter and this tractor was stored behind a shed that was full of more important stuff, with a cover and tied down. The tarp ripped and allowed a lot of water to get into the engine. Then it froze. I absolutely wrecked this engine.
That's the history as I know it, Im sure others know it ALOT better than I...