Apple and Samsung started all this with modern electronics. They pushed the top end up and shrinkflated their whole range. Don't believe me? Look at the S20FE and now compare all the replacements,or how the A series has now been pushed up in price. It's those two companies which set the modern precedence for this - everyone is trying to copy it because it sadly seems to work well.
Once the high end pushes the max ceiling up,the rest of the range is rejigged to fill that gap. This is why people like me were worried about what the original Titan did,when it essentially doubled the price of the GTX580 in one generation and sold very well. It's why AMD is now copying the same tactic - just look at Zen3,Zen4 and Zen5 launch pricing?
I know lots of gamers and I have not known anyone with a £1000+ card. But most of these people have families,etc and have other spending considerations too and other hobbies. So probably casual gamers for want of a better description.They don't care if they have to turn a few settings down or can't get 600FPS in Fornite or COD. But at the same time,most will only ever buy Nvidia,because frankly that is mostly what is available in laptops or desktops. AMD absolutely failed in leveraging the Zen platform to sell its own cards - Nvidia seems to simply understand the market better.
The people I know who will even spend anywhere close to that,tend to be tech heads for want of a better description. So obsess about FPS,or whether they have to turn a setting down,etc. I knew one guy who was always like that and it became a bit compulsive. But it's no different than people who are too much into Hi-Fi or other hobbies. Even if such people don't post on forums/social media they to also lurk a lot.
Nothing wrong with it either,but companies whether its dGPU makers,makers of Hi-Fi,etc seem to be increasingly pushing the boat to ridiculous levels.
I used to be a bit like that a long time ago,until I realised I just wasted too much money. So decided to stick to my budget. If I can't get something which fulfills my expectation I will wait. If I need to reduce settings,or ignore playing some games for now,then be it. I have enough games to tide me over.