I don't own any $500 knives but I do own $150 knives. I have been involved in other activities where there can be huge price differences. I was involved in cycling big time for many years until illness and injury slowed me down. I even worked in the industry for 8 years. Up to around $2500 you saw huge gains in performance for every $100 more you spent. But at some point, the actual performance gains were minimal and really a $2500 bicycle would perform at 98% of the $10k bicycle given all the other factors were the same. The real benefit of a $10k bike was exotic looks and bragging rights with your buddies (except for some of us it was more like the guy with the $10k being a total poser).
So I imagine in knives it will also be the law of diminishing returns. Up to a certain price (let's say $150 just for fits and shiggles) you see big improvements in materials and craftsmanship. But at some point, you are going to spend a lot of money for very minor performance gains. It will be more pride and bragging rights. Since all my knives get use and I don't own any safe queens I see no reason to spend that kind of money but that's just how I roll. I never owned more than a $3k bicycle either even when I had huge discounts available to me.
For me, not everything is about performance nor bragging rights or even 'needing' it.
I like high end stuff because of craftsmanship, exclusivity, quality and knowing the maker went the extra mile to create a product at the very best they could, having spent more time than usually done on similar products to please me and strive for perfection as much as possible. Of course I take pride in what I own, and enjoy it when people comment, but I would never start such a conversation myself, let alone brag about something I own. The main point is that
I know the above, and it brings me joy to own/use something like this, even if no one else ever sees it.
If someone would let you choose to pick one out of two bike for free, and one is a basic bike worth $2500, and the other has everything you can imagine upgraded to the best parts available complying with your wishes. Would you still pick the $2500 one?
Wouldn't you enjoy the other bike, looking at the parts machined especially for your bike, how everything is finished and fits together perfectly, painstakingly manufactured to perfection, just
for you? Wouldn't you ride it with confidence knowing that you have something underneath you that couldn't be better or nicer looking?
Maybe I can't explain it to someone who doesn't have the same feelings or eye for detail, or enjoys these little things as much, but this is how I can best describe it.
Of course I am not speaking of creating an object out of steel and selling it for $200, sticking $500 in diamonds to it, and then selling it for $2000...