MED will never ever be better than blender as a model editor. of course, it would be nice if it was close, but no matter how much MED is improved people will still use blender instead. i think conitec know that, and that's why they invest more effort into what is required to compete with the rest: the actual engine and scripting language.
I agree Many people complain about 3DGS graphic capabilities but in my opinion a game engine should focus only on the in line graphic topics i.e. real time lightening \ shadowing , culling, LOD, BSP and all that stuff.
For Modelling - texturing - animation and in general for all off line graphic topics you must use third party application if you want the top if you use an all in one application you can not expect to get the top
