I currently have five 1911s: an older Kimber Series I, a S&W PC1911, Dan Wesson Specialist, Dan Wesson Pointman 9, and a Les Baer Premier II. Parts quality and fit in the Dan Wessons is second to none in this group (well, the Baer is hard fit but that's an entirely different story). Down range the DW doesn't give up ground to any of these pistols, including the Baer. My Pointman 9 may be the most accurate handgun in my collection.
Colt vs. Dan Wesson, the Dan Wesson will have superior parts, superior fitting, and superior down range results. No, you won't notice a difference at 7 yards but run the target out to 25 and you will. The only reason to choose Colt over DW is because of the name. For some, that's enough, and that's fair.... but if you're looking for the "blind taste test" no one who knows quality 1911s would choose an off the shelf Colt over an off the shelf DW based on parts quality and overall execution.
DW costs more, yes. But if you want the quality then you'll get it with a DW.