From my perspective, quality and materials have moved up faster than prices over the last several decades. Lately it does seem that the quality and materials advancements have slowed a bit while prices still seem to be moving up. There are a couple exceptions to this though, like the Spyderco Manix in S110V. I've been infatuated with shiny sharp things since grade school. I've always bought knives, I've always carried knives, but I never have collected knives. (At the most I've owned fifteen or so at a time)
I got my first Sebenza when it was one of the only framelock, and ATS-34 was the 'wonder steel'. Sold it when I could get 99% as good for less than half the price with a Spyderco sage 2. I think the thing that is driving the knife industry right now is collectors. Honestly, grandpa had all of three pocketknives that lasted him into his eighties, he used them more than I do, and they still work today. Mine have better materials, better fit and finish, and will honestly last with care well into the twenty second century. I don't really need the ten or so knives I have in my rotation. I enjoy seeing posts from people that have many hundreds of knives and talk about how they use them all. My grandfather used one of his knives more in a week than the collector of users will in his lifetime.
Look and you can easily see that most manufacturers cater to this market. I am a big Spyderco fan, great product, decent price. They don't cater to me and the three Spyderco knives I bought over the last six years. They are being successful in business by catering to the collector and making multiple variations of the same knife. (Sage line, Chaparral line, sprints, etc.) Look at the posts. Knife wheels of fifteen different variations of the Manix 2, twenty of the Para 2. With ebay and the internet, any fool with a credit card can try to be the next forum god. An amazing display of Military knives is much cheaper than a tricked out vette.
I don't hate the collectors, it's their money that has made great knives more affordable for me. I do think it is somewhat of a bubble and will burst eventually. Things happen in cycles. Many collectors will turn to something else, and the major manufacturers will have an overabundance of production without sales...or maybe not. I buy what I like. I was happy before I got my new Chaparral last week, I'll be happy if I never buy another new knife in my lifetime.
Grizz
Old saying, but it doesn't apply much. Just felt like adding it.
