No, gavra, they’re not perfect, but by and large kollel yungerleit are a great deal more accomplished in the middah of histapkus b’muat than baalei batim. A small minority live in luxury; the majority try to find ways to minimize their expenses. If people want to pick on Borsalinos, they will, but the general theme here is way, way, off the mark.
I mostly don’t disagree with you, but there is an exception for items that are needed to be “socially” acceptable, which seems to in many cases be a requirement (and each circle has it’s own gedarim of what that is). As an example, I have been told of “sweater wars” in the Mir. The expectation to wear a Bors or be a nebuch (which could affect shidduchim) is similar.
Don’t get me started on Lexi, Infinities and Mercedes’ of the Yeshivish velt, to say nothing of the top of the line Leather Odyssey replaced every two years.
As an aside, I believe it was Rabbi Bender in Far Rockaway who was very against the Borsalino for this reason, that it creates an expectation on a child that is very hard to resist.
flatbusher – you can’t do it at 13 for the 13 year old who wants this hat or the $3000 tefilin (as in the Yated), but you might be able to do something for the child for when he will (hopefully) become an adult.