I think the main reason is more likely the ones who have the more expensive product, can (usually) afford it, therefore are not too worried whereas the people with the cheap product have received it as a gift or have saved up for a while to get it so it feels more precious to them and harder to replace if anything happens.
It's just like anything else - when you cater to the budget crowd, you're going to get nickel & dimed to death. When you start dealing with people who can actually afford the stuff they want, things get easier. It becomes more about finding the right 'product' than finding something that fits their budget.