I know quite a few people whom that particular knife would appeal to. They buy a cheap knife when they need one, and if it gets lost or broken they'll go get another cheap knife. They're the same way with their footwear. They buy $20-50 tennis shoes every year. Over say, 8 years, they'll spend $3-400 on throwaway shoes. I wear lineman's boots, all day, every day, for the most part. I appreciate good footwear and consider the $450 I spent on them to be worth it. For about the same money they will spend, I have all the footwear I need for anything I do. Hell, I've had the same pair of $50 tennis shoes for 5 years, I hardly ever wear them because I'm too busy trying to wear out the boots before I get too old to lace them. I'm the same way with knives. I generally don't carry anything much less than about $100, because I appreciate good tools as well, and the quality I prefer isn't exactly cheap. But I have a $40 CRKT Fossil in my pocket right now, as a useful tool for certain jobs I'd rather not do with my fixed blade EDC. That's about as cheap as I go, personally.
My friends still wear out a lot of shoes before I do. And they break or lose a lot of cheap knives. Tho I've tried to convince some of them that more money spent up-front equals more long-term satisfaction, they don't care. And we're still friends...
Edited to add: In the spirit of honesty, I do have a $9 Coast liner lock in my tool-box.