Sheaths are the bane of knifemakers and manufacturers. No matter what sheath you provide, at least 2/3's of the customers will dislike it, regardless of how well made it is. That's why some manufacturers don't sell their knives with a sheath at all. I can tell you we seriously considered it.

In the end, the sheath you get is a compromise between cost and performance and generally, cost is a major factor. Folks usually won't pay more for a high quality sheath when odds are they won't like it anyway. And, sheath costs can significantly impact the selling price of a knife.

There's a story I've heard more than once that the first time Gerber produced a knife where the knife cost more than the sheath, Pete Gerber had a huge party to celebrate.

Sheaths are a PITA! BTDT, got the t-shirt. :-(