For me the big issue with all these incredibly priced products is the impact they have on bringing new folks into the fold. I can't tell you how many folks, both young with good-paying jobs and older with disposable income, that just roll their eyes about investing in quality audio systems after browsing ads, magazines, and websites and seeing $1,000+ cables, $2,000 plus cartridges, $3,000K DACs and other such costly items. Between the ridiculous (at least to them) cost and claims, this completely turns many interested folks off to our hobby. To me this is the biggest problem with such items. Granted there are much less expensive but really good products out there, but that is not what the general public really gets exposed to.
Super cars and mansions in magazines and TV shows don't prevent anyone from buying cars or homes. Just buy what you can afford? You can build a very nice system on a budget especially internet age. Used market or home base retailers with lower operating expenses.
I don't buy the argument expensive components is the reason for lack of interest in the hobby.