I don't think it's necessarily to feel superior. I think everyone chooses luxury goods for different reasons, for some it is a status symbol, exclusivity. Some may like the style or quality of the bag and the fact
that it holds value years down the road, possibly an heirloom. Plus, our tastes change in different stages of our lives. You're right we can find a bag for $500 or even $50, if the sole intent was just to carry our things then none of us have to look beyond a cheap plastic bag. But, we all have different styles, and lifestyles and ultimately we justify our purchases based on what makes us happy. For instance, I feel $25,000 is outrageous for a bag but it's all relative because someone with millions don't see that as a huge expense. Whereas $5000 may seem ridiculous to someone else.
About the quilts... They're pretty, puffy and my granny is cool!