You clearly don't know what quality (and prestige in this case) is. Some years ago I could not understand why people buy these expensive clothes, because......I did not have the money to try. But now I can easily distinguish a cheap/shit material from a quality one, and it does make a difference, well unless one has no aspirations to be the best, experience the bes and live life of the best quality possible. I do and it's great when it happens.
You sound like my wife. Sure - I will admit that those posh handbags are better quality - but honestly, they aren't worth 5 grand a pop.
Fact is, there is a market for things that are overpriced for people that want to show off. Wines, Cigars, Whiskeys, Watches, Handbags, Clothes.
They generally are good quality items but you are paying a 10,000% mark-up for the fact that most people cannot afford them and it gives you status.
I remember reading a book about Palermo where a lot of Italian designer gear gets made. These 5 grand handbags being made for about 40 Euro's. You have to respect the people selling that stuff, even if the buyers are muppets for buying it.