So Mr. Jones needs a car so he can drive to work and back. Does he buy a Rolls Royce, even though it's financially quite painful for him to do so, or does he "cut corners" and buy the $20,000 Toyota? Does it make any sense for Mr. Jones to drive a Rolls Royce to work?
It's all about compromise, always. I've heard high-end mic preamps and some of them can make an SM57 sound like a capacitor microphone, but for home recording purposes, the preamps in my Mackie mixer are more than adequate and I can't justify spending more than that for what basically amounts to a hobby. I find it ridiculous that people who are recording music in their bedrooms or basements are spending (or are being urged to spend) thousands of dollars on boutique mic pres when they could be using that money on something far more useful like pressing CDs and sending them out to radio stations, buying that nice guitar amp or piano that they've had their eye on, etc.
Once you start taking a "no compromise" approach to your home studio, where do you draw the line? Since you're already spending $800 per mic preamp, why not upgrade to mics that cost $1000 or more? And while you're at it, why not spend $10,000 on a high-end desktop mixer? You could spend another $10,000 on outboard EQ and signal processors, $10,000 on ADC/DACs, and on and on it goes. Where does it end? And at what point do you start to get diminishing returns on your investment? Is the difference in sound, that to most of your listeners will be so subtle as to be imperceptible, really worth the extra $700 you paid for a boutique preamp over the Mackie or the M-Audio?
These days, you can do more, better, with $3000 worth of gear than you could 12 years ago with $15,000 worth of gear. Smart consumers will take advantage of this situation and be grateful for the extra $12,000 left over in their pockets to go towards a home, a car, a vacation, their kids' education, etc.