Althought the iPhone 5C is substantially much cheaper than other current generation iPhone products, it does not mean that the quality of the phone is lower than it's predecessors. The only major difference from the 5C from the other iPhone 5 phones is that it has 8gbs in it's hardrive, and that it's size is smaller than other iPhones. Apart from that it's hardware, and quality is just the same as other iPhones in it's current generation.
One thing you can say about Apple is the fact that no matter what they come out with, it's going to be good. I understand the phone is cheaper and smaller but it will still be better then most of any other products on the market. It may not be on the level of a regular Iphone 5C but it will be great in it's own right.
Yes, Apple's cheaper, smaller version of the iPhone 5C will be up to par with other iPhone products, because all the technology is still there. Apple already developed all of the apps for other products. Producing the phones just became cheaper over time. But Apple would only put out quality.
The lack of quality workmanship in iPhone 5C's was obvious so it is doubtful that much will change with a cheaper and smaller version. If anything I think that probably signals another effort for Apple to lower prices in a bid to gain back market share it has lost since Steve Jobs passed. I do not believe this product will be heavily purchased by consumers.