ZD:
The bigger issue is that many people (nothing to do with frum, Charaidi or purple) have no idea how to budget, save or spend appropriately. People who need shoes go buy shoes (which may be $100+), when they should be spending $30 on shoes and the other $70 on things like food, rent and tuition. I am (nebuch) aware of such individuals, and it is a nebuch, as they don’t have what they need and can’t comprehend why not.
The second point that needs to be made is peer pressure is a very large factor in what some people purchase. I heard recently something about “red soled” shoes. I don’t know why someone would care about such a thing, but if there is pressure to wear them, then someone may buy them no matter the cost.
Finally, there are people who have problems with their feet who need to buy orthopedic or extremely high quality shoes, and it is worth the money spent.