@MrBandO
Greg, first of all, keep in mind text-only posts that are the least bit negative tend to come across as far more negative than intended. I'm actually not as negative as it might seem, so please relax! Also, it's okay to agree to disagree and still be friends (wink). I don't mind, and I hope you don't either.
First, I do use craft paints on my layout, but I will never use craft paints on my rolling stock or locomotives as the base coat. I figure if I pay $250 for a nice loco or $35 for a nice piece of rolling stock, I'm not about to wimp out and use a $1 bottle of paint on it. I will get a quality paint ($2-$3 per bottle, still won't break the bank).
Where I do use craft paints:
1. I use craft paints for weathering, including on rolling stock. I don't care if the colors fade, get muddy when mixed, or dry soft. I prefer not to use craft paints for loco weathering, however.
2. I use craft paints to paint scenery. I don't care if the terrain or rock colors might fade over time. Eh, big deal.
3. I use craft paints to paint details like barrels, fire hydrants, sidewalks, roads and road stripes, and so on. Again, possible fading later doesn't concern me.
4. On many structures, I have no problem using craft paints to paint them. Again, if the structure fades, so what.
5. I have used craft paints to weather my track ties. Again, I am not particularly concerned if the colors fade over time.
One reason I'm not too worried about fading on these things is because a good coat of dust will fade them far quicker than any pigment fade might happen. I am not going to go around my layout every 6 months meticulously cleaning the dust off every inch of ballast, off every rock, or off every structure surface. I just won't!
Keep in mind I'm talking about using craft paints straight. In all the use cases I list above, I use the craft paints straight, or thinned with one of my thinner formulas in the MRH Acrylic Guide.
Upgrading the paint base like you do with a quality artists acrylic medium acknowledges that these paints as they come fall short. Using a quality acrylic medium (not cheap) upgrades the craft paint into the realm of what I would call a student grade (low level artist's grade) acrylic. The pigment quality is lower on student grade acrylics (less pricey) versus top level artist grade acrylics (more pricey). See this YT video for a comparison: ... skip ahead to about 1 min in to get past the goofy intro to the serious stuff.
So you're actually doing just what these cheap paints need with your upgrade formula. But you're adding to the cost of the paint when you do that. I get that the total cost is still less than quality model paints, so in a pinch, that's certainly a budget painting option that's far better than using the craft paints straight.
However, if I care about the thing I'm painting getting the best quality finish possible (locos, rolling stock, key structures), I won't use craft paints, not even your upgraded craft paints, for that. I list my reasons in my previous post. On that, we probably just need to agree to disagree.
P.S. This Youtube video I reference above does some quick comparisons of cheaper acrylics to more expensive artist acrylics ... and suggests some tests we could do with model paints vs craft paints ... like the coverage test. I may do those tests one of these days and document the results.