The thing that China CAN'T overcome at least in the short term is both the cost of shipping and the amount of time shipping takes. As the article mentions, a shipment of product can take up to 6 weeks whereas products produced in the US can be shipped within hours of completing production. There's just not any reasonable way for offshore production companies to overcome this issue that I can see in the short term and that could drive the onshoring movement aggressively, especially with the constantly increasing costs of fuel.
For bigger companies though with more stable product lines I think this is much less of an issue. Bringing manufacturing back is working for GE for more complex and expensive products. I am not sure you will see then bringing back the basic models of appliances though.
The best part was, everyone was involved in the whole 'stack'. The engineering group I worked with handled QA, but also travelled downstairs regularly to help with manufacturing procedures. We watched assemblers and proposed design changes to make their jobs easier. The process created a virtuous cycle where the initial person laying out the board knew what kind of headers would be hard to connect in which enclosure (for example), and as a result the quality was very high while being competitive on cost.
I think an assembly process like that would have helped, for example, with the teething problems experienced by the Jawbone Up.