I think that, if we had a good contact with a manufacturer and had an easy means to both pay them and be assured that the transaction was reasonably safe, then a few of us would happily deal direct.
The problem for us in the West has always been trying to find out who the manufacturers really are (there seem to be many resellers posing as manufacturers!), getting a good contact with the manufacturer who can understand clearly our requirements (the language and cultural barriers often makes this difficult), being assured that the product quality is good and finding a way to business with them safely.
I bought some Headway cells directly, and the transaction was OK, if a little slow and cumbersome in terms of making payment. It seems that manufacturers in China cannot easily accept standard Western payment methods, like credit cards or PayPal, which adds to the difficulty, meaning that we're pretty much stuck with dealing with outlets like HobbyCity.
Jeremy