It's only a minor part of the story. Aside from prices consumers are willing to pay, there are also profits. Even if we are willing to pay more, corporations are still going to outsource to maximize their profits.
I think we just have to accept it. We just have to live with the fact that US is the home of innovation and creative work, but not necessarily manfacturing. I disagree that investing in China creates no US jobs - that's shortsighted. You look at 40K Chinese workers, and you should also look at the new Apple campus that is going to host more than 10K highly-paid engineers. Don't be stupid and think that's not jobs.