Over the years, I have replaced gear with more expensive gear a number of times and have always gotten a rewarding improvement in sound quality. I always keep the gear being replaced until I'm sure the new gear is a worthwhile upgrade. I'd bet I could keep on doing this all the way into top of the line gear.
We really shouldn't worry about what other people are spending. You buy what you want and let others buy what they want. It works out well that way.