I have grown my system from a $350 affair in 1972 to it’s current state of around $150K. I have methodically and incrementally invested over the entire time. I have spent thousands of hours learning, experimenting with cables, cords, and components. I have spent thousands of hours traveling all over the world with every portable musical device / combination you can imagine.
Large investments components has brought me larger and greater jumps in sound quality along the way. The very largest differences were the most recent and the largest investment.
If, let’s say you measure the frequency response or something… sure diminishing returns.
But it is about the music…. and the ears / brain can be an astonishingly sensitive instrument. “Great sound quality”… is about peeling back layer after layer of what that means… an enormous onion… layer after layer of nuance to bring pleasure to the listener.
Of course, it is a matter of values. I really value high quality sound… that is musical, nuanced, incredibly accurate… like brass sounds like brass… not trebly distortion like most of us though cymbals sounded like when we were young. So, for me the gains have increased with investment.
Audiophilia is all about the real love of musical reproduction. Most people think we are crazy… why walk down this diminishing return return curve. But those of us that fell in love with really great musical reproduction as youth see the reward as accelerating return. That has absolutely been my experience. I am absolutely ecstatic with my current systems (see my UserID).