When the quartz watch hit the market, most watch companies embraced it with a vengeance. It was cheap, didn't need to be wound and was super accurate. The advantages over all other electric types were beyond question. It seemed too good to be true and it was. The shortcomings of the quartz watch didn't manifest themselves for several years and by that time most watch companies and the ebauche industry had been dramatically downsized. Omega stopped making their in house movements because it seemed that they wouldn't compete against the new technology. Movado did the same. Ebauche companies were devastated. AS and ETA were already the big players so they stayed in business. The rejection of quartz by consumers of high end watches was settled fairly quickly as $1000 premium watches began dying. Old established companies like PP, Rolex and JLC wisely kept their mechanicals coming and benefitted greatly. Omega at one point discovered a supply of old manual wind movements put aside years before because they wouldn't sell as manual winds. They cased them into retro solid gold cases and got over $1000 each for the lot. At this point in the game Omega and virtually all the other brands use the ETA 2824, 2892, and 7750 or a derivative thereof. Rolex still makes the Rolex, PP still makes PP and JLC dabbles in new technology of their own design but stays with their automatics.
Why do we prefer the old in house movements? They were beautiful and unique. Omega won many many timekeeping awards with their in house products.