I think you're being a little too hard on it. Sure, don't like Giggles if you wish, but I don't think anyone felt the sets were cheap. Asylum was a 3D house, it's always going to have a "cheap" look. Cheap does not equal bad however. In Between is high on a lot of fan's top 10 lists and it's a 3D house. House of Horrors in 22 was done with minimal effort and a lot of people enjoyed it. The visual medium for a house does not always necessitate "big budget" sets, nor does it mean it can't be a successful house because of it.
To epcyclopedia's point, most of the time, it's because things change close to the last minute. Whether it be the IP holder wants changes or didn't approve something (Scream, AWiL in 22) or Universal steps in (HoH in 22).
EDIT: Reading Cole's statement again. I saw he meant end of houses, not entirety of houses. Damn morning mindset strikes again.