I think this is a little unkind. It is not 'none of them are willing to spend 5 figures on a bag' but more that they don't have 5 figures to spend on a bag. There concern is not 'if I buy this bag will it count against my quota' or some such other Hermes 1st world problem.
There is a lovely new thread on here: Reveal! My first little piece of Hermes!
It is a twilly and it is bringing such pleasure.
Surely the important thing is that Hermes does not compromise the quality of its lower priced items - so that whatever you buy can be something special. I agree we do live in a more label conscious world, but does that really matter?
Twenty years ago I bought my first piece of Hermes - a silk tie for £65 - it has no logo, just a label on the reverse, that would not normally be visible. I do now have a couple of bags, but my Hermes purchases a still mainly what you might consider entry level.
I'm obviously not Mrs.O, but I read her comment as meaning that many (not all) younger people (millennials?) do not consider a 10k+ bag something they want to invest in (even if they have the ability to do so). They might invest in a 10k bike or various tech items, however. Again, this is only how I read it, where I live this is how it is playing out. An expensive bag can be frowned upon, an expensive bicycle....not so much. I do hope that @MrsOwen3 comes back to clarify.
I also enjoy the smaller H items, but I have a love of the H brand in general...I tend to choose the H version of any item (scarf, SLG, shoes, bag) as long as it is financially feasible.