How much does a DAC do the more expensive it is?

If that was your point, Tony, you are right I did miss it. However, I still don’t see where the cost of ownership comes out less.

I have heard extraordinary systems, and they have sounded extra ordinary with the music that was played for me on them. I have never owned one. But I have played extraordinary recordings on my more modest system, and they have also sounded extraordinary.

$11,000 DAC used will likely enjoy his purchase immensely with potentially a lower cost of ownership than the person who bought the $1100 DAC new.

Tony, accepting your hypothetical numbers the person who bought the $1100 dac loses $1000 in value while the person who bought the $10,000 dac loses $5000 over the same time. That does not equate with a lower cost of ownership for the more expensive piece in my book.

This whole “cost equals sound quality“ argument in hi-fi is very suspect. Here are a couple of reasons why. 

A.) In many, if not all hi-fi components, the case equals more than half the cost of the component. Thus, you are paying for looks not for sound necessarily. I believe this is typified by the value proposition. Many have acknowledged for Schitt t audio products. Decent quality in a cheap case sold at a reasonable price. PS – I don’t own any of that particular companys products. 

B) it is well known in marketing that price automatically equates with value in the minds of the majority of consumers.

C) the inability to totally characterize sound quality through measurement plays into the hands of the marketers in B. 
 

and OK I will admit that there may be some boutique brands out there, using exceptionally high component quality who have developed intellectual properties that make their products worth extravagant prices. I don’t know. What I am saying, however, is that the opportunity exist for lots of deception through effective, marketing and appearance in shiny boxes and if there are not a lot of people taking advantage of that, then I guess we don’t live in a capitalist society.