[fusiongyro]

I have a $2500 setup so I may not be a sane voice on this issue, but I honestly think part of it (the mid-range?) is partly about setting up an environment in which "just" actively listening to music is acceptable (as opposed to watching TV or a movie).

[davidcuddeback]

I think that's something that's misunderstood by a lot of people. When actively listening to music without other distractions, the distortion in low-end systems becomes very apparent and detracts from the experience.

When listening to music in the background and while doing other things (cleaning the house, cooking, driving, socializing with others, working out at the gym, etc), distortion is easily lost in other background noises (and you're not paying as much attention to it anyway). For a lot of people, I think this is the only way they ever listen to music, and so it's understandable why they wouldn't see the value in higher quality components.

For someone like yourself, who will actively listen to music without other distractions, it makes sense to spend a few thousand dollars for a better experience. With more expensive systems, I think you start to see diminishing returns. (But I'm not as dismissive as other commenters in saying that there's no difference.)