What you say is fundamentally true and beautifully simple. The more expensive something is, the more meaningful it is.
But what happens if you're extremely wealthy and money isn't a big deal to you? An expensive watch may or may not be a big deal with you.
Ultimately, the biggest issue is that people want to feel that they got value. If I pay twice as much for a Patek Philippe than I did for a Rolex, I would expect the Patek Philippe to be a little bit better (law of diminishing returns, you can't expect the Patek Philippe to be twice as good just because it's twice as much money).
So, if we buy something that's 2X the price of X, the more expensive one is expected to be a better product. If the cheaper version is better though and the additional expense cannot be justified in another way, then the world is upside down. Panic ensues. Doom prevails.
Many manufacturers try to create something in various price points to capture the entire market. And Montblanc has decided it wants to be perceived as a value brand. Kind of like where Jaeger LeCoultre was a few years ago.
Scatter-brained post, but your post got me thinking a lot Mark. Thank you!