I don't even think physically there is room for a nichrome wire heating element due to the 3-4mm diam of the integrated sensor/heater element.
There are pictures in the EEV forum thread that Amyk linked. Right on the first page.
the 888D handle is newer, lighter, more powerful, so overall much better in performance.
Is it? I knew they went from 5 pin DIN to 6 pins in the name of progress... but I thought it was for no other reason than preventing compatibility. They improved the tips. The T18 have better performance than 900M. But they fit on the 936 same as the 888. The 888 station has more power. I always thought they used the same heater/thermocouple as the 936 handpieces.
I am beginning to suspect there is excessive exaggeration of the [poor] quality and reliability of Chinese sold components.
I agree, in general. China has manufacturing capabilities that take a backseat to no one.
In most situations, it is too expensive considering time and labor and especially reputation, to sell crap
This is patently false. The manufacturers will make the things to whatever standards they are asked and held to. There are consumers and resellers who WANT low quality stuff. Some businesses make a name out of it. Some buyers like to buy fake soldering iron tips by the dozens. Because buying stuff is fun? Because they like when their equipment goes down and they have to stop and dig around to find their lifetime worth of replacement parts that was such a good deal. That's fine, buyer and seller are both happy.
But the problem is many of these products don't have a name/brand. This would require money in marketing for people to even know they can buy it. They put someone else's name on it, like Hakko. So there are multiple levels of quality among the clones, perhaps including some that are very bad. And even the good ones, how good are they? The real deal can last and perform for over a decade. If you broke two clones, already, that's a pretty bad start.

The world, in general, is in the addiction of newness. People like wearing things out, throwing them away, and buying new ones. But the heater on a genuine Hakko is not necessarily something I would even consider a consumable/maintenance item.
There is this thing called calibration... 
Yes, true. But this is not the only thing. The way the heater is manufactured can change how it works. Does the heat go into the tip, or does it go into the handle. I have used a clone (I think it's called a 939 on eBay) where the handle gets uncomfortably hot just idling in the stand at set temp.* There are clone handpieces that even have added circuitry to monitor handpiece temp and automatically throttle back the set temp to prevent the handpiece from melting itself. This is the one big improvement of cartridge tips, IMO, is that they can output more power in a higher duty cycle, high heat sink application without heating up the handpiece as much. This is the main drawback of the older style irons, IMO. But among the different handpieces and heaters of these classic irons, some of the clones are much worse than the real deal.
*I can't even tell if my 888 is on or off by picking up the handpiece. It can idle indefinitely at 320C. It only heats up if doing high duty cycle, high heatsinking production soldering.