Kallaskander - I'm afraid I don't follow your logic. If single malts are all about individuality, then the moment you mix one with something else then that individuality is lost - whether it is mixed with another malt, a grain, or multiples of each. Would you argue that the quality of a blend deteriorates in proportion to the number of ingredient whiskies?
As it happens, I don't think being the product of a single distillery or a single master distiller is a guarantee of quality. A bad distillery, a bad distiller or bad casks will lead to bad whisky. Reviews of products from, for example, Littlemill, Dufftown, Deanston, North Port, Tormore, Pittyvaich, etc. suggest there can be some really ropey stuff on offer.
I also don't agree that grain whisky is just about cutting costs. Grain whisky has its own range of flavours and having sampled a few (and only a few), I can vouch for the quality that can come with a grain. Grain whisky can add another dimension to a blend that malts alone could not offer. Sure, there is a wish to generate consistency within a brand over time, but isn't the same true of single malts, which are usually a mixture of different vintages from the one distillery - often with very different profiles. The trick is using the ingredients to create the complexity and balance. The fact that there are some really cheap and nasty blends out there does not mean that all blends are cheap and nasty.
If you define quality to mean individuality, then of course you will always conclude that single malts are higher quality than blends. But this is a rather circular argument. I would rather judge quality on the flavour and it seems odd to me that anyone would want to judge quality on anything else.