I'd agree if the less expensive item provides identical or better functionality, functionality being defined by perfomance of primary function. For instance, your Timex is a watch, whose primary function is not to impress women in bars or business associates or whatever, but to keep accurate time. In performing the primary function of a watch it clearly outperforms a Rolex for much less money.

In the case of a pre/pro the primary function is signal management, including switching and processing. In this case the Sunfire TG3 (for example) has clear benefits over the Outlaw 950 (again, for example) in the performance of their primary function. Whether the difference in performance is worth the difference in cost is a matter each buyer must evaluate for him or herself.

Thus I find the Timex/Rolex comparision not really representative of the issue. All IMO and YMMV of course.