Another college student weighing in here. I personally don't see the point of a $200+ folder, however, I also refuse to buy Wal-Mart junk knives. I may carry up to $100 worth of knives on me at any given time, but that's spread over 3 knives, which is perfectly adequate for me.
I'm a 21 year old collage student and also into knives. I have to agree with what you said there is a huge difference between Wal-mart junk and a good quality knife from a reputable manufacturer.
Most collage students are on a VERY limited budget unless your a trust fund baby or something. More often then not game consoles are given as gifts but knives not so much. I have some budget knives (75$-150$) and some higher end knives (200+) but other then fit and finish I can't tell the difference.
You can get a GREAT folder for 100 bucks that will perform 95% as good as the ones that are 400 bucks. Maybe not look as cool or have as good a warranty but whatever. Make your choice.