Hi Jonathan,
First, "Nice" knife is probably the wrong word. Embellished would be better.
I just received an F-4 Tactical Folder from John W. Smith...technically it is as "nice" as the knives that John will make for the Art Knife Invitational later this year. As nice...but not embellished.
There are a lot of very "Nice" knives $600 and under...both stock removal and forged. The vast majority of knives knives made are well under $1,000.
Second:
Am I worrying too much about this topic or could this fade away depending on the future generations
When I got involved with Custom knives 25 years ago there was basically 4-6 shows in the US. Maybe a couple in other parts of the.
Today (as an example) we have 3 custom shows in 2 weeks (ABS Show, PKA Show and Oklahoma Custom Knife Show). Then next month we have the Guild Show and the Chicago Show, October has the Art Knife Invitational, November features the NY Custom Knife show...and there are others that I missed.
Today there are more makers, dealers and collectors than there were 10 years ago. This is in no small part due to the Internet.
I have a theory that custom knife shows (sales wise) have been so poor this year due to a "Perfect Storm" of sorts.
Combine a slow economy/economic uncertainty, people who have to fly to shows are less than confident about flying their knives home in an unlocked suitcase (fair or not there is a high level of concern) and last the Internet.
The Internet may be the "hurricane" of the storm. People have gotten very comfortable buying knives off of the Internet. Couple this with the cost of going to a major show and the economy. Many have chosen to spend the "Show Expense" money buying a knife on the Internet...possibly two.
Giving the false appearance that slow shows are an indication of slow custom knife sales.
Example the 3 days before the Blade show this year, I sold 5 Times the Dollar amount of what I sold at the 3 days at the Blade Show. While I had my worst Blade Show in 17 years....I would take that week of sales every week!
So the shows may seem slow and some are. However, this is no longer an accurate indication of the current custom knife market. The Internet has been really cutting into show sales for years. Perhaps the slow economy was impetuous for the "Tipping Point" to occur between shows and Internet sales??
With regards to the cost of a knife. What my experience has shown me is that it is the level of "Knife Education Level" more so than level of cash in the wallet that will dictate the purchase of a "Nice" knife.
Most people go through the learning process of factory knives, inexpensive custom knives ($150 and under) then over the course of 2-4 years move up to the $500 - $1000 level.
This occurs while spending thousands of dollars to pay for that "education".
I suspect that TKC who appears to primarily collect tactical folders (although I know from experience she has/had at least 1 hunter) has probably spent more than enough money on those knives over the last 5 years to have purchase just about any "REALLY NICE" knife she would like to.
So in her case and the case of countless other collectors...the have the knife education, the funds and have chosen on a particular style or genre of custom knives. That rarely include "Embellished" knives.
Consequently, even if someone like sidecutter's friend has the bass boat and Silverado. One they may not have $400 to spend on a knife

. Two while it appears the person has the money....they probably don't have the "Knife Education" to understand and appreciate why a custom knife would cost $300 or $400.
As Ken, R C and TKC point out they seem to in one form or another discussing "custom knife education".
Oddly enough the two organizations with the most to gain in educating custom knife collectors: The ABS and Knifemakers Guild do very little to that end. Seminars for collectors at their show once a year is not nearly enough.
Compare what these two organizations have done not just on an annual basis but over the last 20 years to what the CKCA has done to educate custom knife collectors. There is no comparison, the CKCA trumps their meager efforts at educating knife buyers.
Before all you makers head for the keyboard...I am discussing educating "Custom Knife Collectors/Buyers" not "Custom Knife Makers"
RC a side note, I like your "Mid Price Point"....Ten years ago that would have been the "High Price Point".
This is another indication that people are getting educated and are willing to buy more "Nice" knives.
Jonathan, if the last 25 years is any indication...things should do nothing but get better for custom knives in the future.