One spends money for great sound quality.
The beats headphones were bass heavy, but poor quality for what they charged. One was buying into the hype and the name.
You're still limited by the audio device you use though. Cell phones and mp3 players can't take advantage of high end ear phones, when the limit is reached they will end up offering the same quality no matter the specs, price, brand, etc.....
Beats are great marketing. They made the high dollar ear phone a fashion accessory for everyone. They are to ear phones what nike is to shoes.
The best marketing job they did was to get Apple to break character and purchase their brand.