Misunderstanding? I believe the point people are bringing up is that when you spend a substantial amount of money, you reasonably expect prestige AND higher performance (accuracy)- much like audio components.
Who will admit to buying a component strictly for prestige or appearance when knowing its performance is substandard to others at a much lower price point? Isn't performance the ultimate reason for the investment and the resultant prestige a la Ferrari, Porsche, Fountain powerboats, Gulfstream jets, and (insert your favorite) audio components?
My "big name" not-inexpensive quartz watch has exquisite design, fine materials, outstanding features AND virtually unmatched performance - that's my criteria for spending big $ for a watch anyway.