Not in my recent experience -- I got a tool set for Christmas 2 years ago -- the ratchet broke on first use (the retaining clip that held it together either broke or was never installed), one of the box-end wrenches snapped off while trying to loosen a tight (but not corroded) screw on a lawnmower.
I think craftsman still has a lifetime warranty, but I didn't even try to replace the broken tools, I bought replacements of Home Depot's store brand (Cobalt?) and found them to be of better quality.
A couple years further back I bought a Craftsman floor jack, it broke on first use, a pivot pin was missing, so the entire jack arm bent over to the side when I tried to lift my car -- it wouldn't retract so I had to use my car's tire jack to lift the car enough to get the broken jack out.
I took it back to the store and the clerk said "Put it over by that other one", and that other one had the exact same problem.
No, although some 3rd party stores will still honor it.
Kobalt, yeah. They're possibly better, but probably not. I own a few things from them that have been perfectly functional, no complaints, but not high-quality.
I have very few modern craftsman tools--most of my hand tools are vintage--but I've found them to be comparable. I wouldn't be surprised if they all come from the same factory somewhere.