OK, I'm at home and settled down with a beer so here goes...
I have a fair experience of dealing with musicians that want high end acoustics and what I describe is just really my observations.
Generally I find you can place them into three distinct categories. They are, I want, I deserve and I need, by that I mean those that just want to have a "nice" guitar and don't pretend to understand any complex issues that that choice may involve.
I deserve" types tend to believe that having a guitar made will somehow improve their playing because thats the main thing holding them back. Finally the "I need" camp are usually pro session guys or working full time musicians that have a very specific set of check boxes and are by far the most common folk to present at my door. Ask them to chop in their favorite high end acoustic for a well made big name mass produced guitar and see the response you get.
So how does that explain the difference between a top end acoustic or a branded instrument or a mass produced instrument from the many excellent ranges available? The answer is really in the detail. The gigging jazzer who wants an archtop built to his spec or the folk singer who is looking for a sound he can't find from the main names knows exactly what they are after.
The finger picker who wants a 12 fret 000 style with a deeper body and wider neck, set up for silk and steel. Where are they going to get it. Answer they commission one. They are not right or wrong but they can do things on the resulting guitar easier than they can on a generic guitar. I know because I see it all the time. The argument then is, is that in the instrument or the perception of the player. You'll be the judge on that one. I have sold a number of commissions on the back of one guitar I made for a session guy, but none of the subsequent commissions has been the same as the first and every one has been well received.
So that deals with my experience of those that want to spend good money and in all cases it hinges on expectation. In some cases justified in other cases not so.
Next What is a high end acoustic? I see two distinct areas here. Branded name guitars and bespoke instruments. Obviously I'm heavily biased towards the latter but I do appreciate the wonderful guitars that the big names make. That doesn't mean I'm not aware of their flaws. Each big name has their good points and they also have many compromises. Its these compromises that most of the criticism aimed at them focus on.
Bespoke instruments from makers such as myself have their drawbacks as well. The most obvious is the leap of faith required to trust your cash on a guitar that will not have the same "immediate" resale value that your Martin or Taylor would have. That doesn't make them worse guitars. I know I'm biased but in most cases, as instruments they are better guitars because they are made for YOU, they just don't have the name to sell it on. Not a grumble, just a statement of fact really.
Right I've dealt with my thoughts on the musicians that crave high end acoustics and the distinction between what I see as the two types of high end acoustic, so what about "why are they "better?"
There are a load of analogies, You drive to work everyday so you go out and buy a reliable saloon car that does 40 mpg and is cheap to service and run. If you have to drive at work you might want to get a van or pickup because that saloon is soon gonna buckle. If you want to race Formula one you wouldn't do it in either but under it all they are all cars. Its horses for courses really. Another analogy, you have a BBQ on Saturday night and you can get your burgers from Macdonalds or your local butcher. I know which I'd go for but they are both burgers (well almost).
Another one your getting married. Try telling her that you have a perfectly good suit in your closet and you really don't need to hire, buy or have a another made. Point is that it is all about what is right for the purpose. If you just do a bit of acoustic playing or your style doesn't warrant the supposed benefits of a high end guitar you are better off sticking with your current choice. Save your money. But if you fit into the group of musicians that play a lot of
acoustic guitar and find that there are limitations to your development it's time to explore whether a better instrument will allow you to "pull" more sound out of your style.
Seriously, I've been amazed in the past by the amount of dynamic range that a good player can pull from a guitar. Put a good instrument in their hands and the bar raises again.
I haven't touched on why the materials or setup and design of high end acoustics are better (they are) because I don't see it as relevant to Cephus's original question. The bottom line is high end guitars exist and sell because a high proportion of players recognize the benefits that they can provide and others evolve to a point where they see the difference. That is after you have cut through the brand snobbery, fashion, and marketing crap that surrounds our industry.
Phew what a ramble, flame away now guys don't forget, just my observations YMMV.
When all is said and done a guitar is just a tool, but some are better suited to the task in hand and
you gets what you pay for only if you know what you are shopping for.
Sermon over, now back to my beer