"which devices make them feel better": Yes. Therefore buy the more expensive cd player? Not always. If I heard those two cd players, and felt that the $2000 sounded better, I would have to seriously ask myself if it sounded $1850 better. For that sum, I could buy a projector, or significantly increase my CD/DVD collection, or build myself a new top of the line PC. Now if the person in question had 2k to drop on a cd player, and was fine with that, then sure, buy it. There's no thought required. But in terms of "feeling better" about a purchase, as you said, it can often be the right decision to buy the moderately priced option and free up money for other things.
