I agree with the above, particularly HesitantShopper, and Wildflower's story of "pride in both directions". I think that anecdote is very true, and I can see why it stuck with her.
Me? I just don't say anything. If someone compliments a bag, I do a polite thank you, and on those rarer occasions where someone wants to talk about something they have or are planning to purchase, I will *happily* join in.
What makes all the difference, in *
your* case, is that your friend spends freely on plenty of other non-necessities .... obviously, that's what makes her comments completely out of line and completely uncalled for.
Ironically, the closest I've ever had to a bad reaction from a friend, came from the mother of one of daughter's good friends. This is a wonderful woman who I really like, and with whom my friendship has genuinely grown over the years... but who, unfortunately, cannot afford little luxuries like bags. She and her husband provide perfectly fine for their girls, but it doesn't leave a lot extra. She never said anything outright, but her eyes would constantly go to my bag, and sometimes I would just get an impression of annoyance or innocent jealousy. I felt genuinely, honestly, bad for her, and over the last year or so I've given her three brand new
Coach bags, two brand new Coach wallets, and another Poppy wallet that I had used for a grand total of three days. I never made a big deal out of it (if I find a nice bag at the outlet that I know would work for her, I give it to her and say "Happy Hanukkah!", the joke being that it'll be nowhere near Hanukkah at the time, and neither of us are Jewish anyway

), but since then she's used nothing but these bags. And you can tell she's honestly very proud of them.
........ But see, *she* was always polite and never outright snarky ... and I love how the whole thing turned out. I love seeing her happy like that. She's also the only person that I do feel comfortable mentioning something about my bag to, and we both get to happily enjoy the conversation.