Honda does not make "cheaper" cars. They have improved their manufacturing abilities to make them at the same (or better) quality level, but for a lower manufacturing cost. this results in either lower prices to the consumers, or to no price increases for new models.
I recently met part of the Honda R&D group that redesigns the Accord. I told them how much I love my 2003 Accord EX, and they told me that the 2008 Accords will be another phenominal model (best since the 2003), and will be sold without any price increase. Bigger car, bigger engine, more luxurious, etc.
Honda works on the right things to reduce their overall costs, which gets passed on to us. The American manufacturers cut quality (cheaper parts from cheaper suppliers), so you pay for it in repairs.
I've had my 2003 Accord for 3 1/2 years, and just now put any money into it -- breaks, tires, changed transmission fluid, etc. These cars last forever!