I have a tendency to think the other way. A completely made by hand dress or garment would certainly work--people used to to do it all the time, but I think few would argue that a dress made by machine has stronger seams and will hold up better over time and abuse than one made entirely by hand.
And I've still got that mentality when it comes to quilts--a quilt made entirely by hand is more delicate and needs to be treated more gingerly.
So I suppose, my mentality is quite opposite--180 degrees of what your guild/ladies are telling you. Probably some of it is my age (50) and some of it is my background in garment sewing.
I can appreciate something made by hand--I did do a lot of cross stitching, both counted and regular, so I understand the time involved.