Based on the images, I'd imagine those soft formed parts around the base and handle would become brittle, crack, and either peel off in one piece or crumble away bit by bit.

The point grandparent was making is that the "deluxe" models often use the visible metal parts to provide the appearance of durability, when the internals are identical between models. It applies more to refrigerator doors than to box graters. That stainless steel fridge is going to have the same crappy plastic blower fan as one with a painted door, but may sell at a higher price, because it looks more durable to anyone who doesn't own a screwdriver.

The usual implication is that that the manufacturer didn't cut that specific corner, so there may be other corners that were not cut. It's like replacing the hood ornament of your VW beetle with one made from solid gold. It will then be the only part that doesn't rust all the way through.