I have a KZ-45 (Full size). It is reliable and compared to the problems a friend has had with a CQB, the KZ is quite reliable. This is just one KZ and one CQB out of thousands though, so take the above with a grain of salt.
The external extractor works just fine.
I did send my KZ back to Wilson to have them open up the chamber just a bit for reliability sake.
I typically shoot S&B to get brass and have had good results with well over a 1,000 rounds of the S&B. I believe I had 3 or 4 FTF, no FTE. I will note that my KZ will not shoot 200gr LSWC at all. I loaded up about 600 of them with varying OALs and could not get them to work (they were great for Slap-Rack-Bang drills though).
I currently feed the KZ Rem. 230 Golden Sabers on S&B brass with W231 powder. I have had good success with these reliability wise, and I match their OAL to my carry rounds (factory 230gr GS) by putting the factory rounds through my LEE dies.
For cheap practice, I use 230gr LRN with S&B brass and W231 powder.
I believe I have close to 4,000 rounds (maybe 5,000 now) throught the KZ, and carry it nearly every day.
I will note that the magazines are expensive, and IMHO not of the best quality. The base plate on the magazine is made out of a plastic that seems to be a little to hard (read brittle). I have heard of these base plates breaking when a full magazine is dropped on a hard surface (10 rounds of .45 is heavy). I must admit I have never had this happen though, but I think for $40 you should get better.
SDM