Hi Pat,
I'm not sure I understand you, but if you're equating increased price with "perception of quality", well there are all too many incompetents and charlatans out there who are building and selling exactly this sort of product.
There are audiophiles who are unfortunate enough to buy into this, due to a combination of inexperience, listening to clueless reviewers, and frequently having too much money burning a hole in their pockets. I'm not as concerned with the fellow looking to throw $$$ at his solution as I am the poor working stiff with 3 kids and a mortgage.
If you drop down one level on the price scale, the world doesn't need another SDS controller. It's my contention that there are enough "me too" products out there, such that Jim will sell too few of this sort of product to make it worth his development time - even if he applies some innovative concepts - at least if he starts off with this sort of product.
Jim has the smarts to design something first rate, and this is how he can thrive in the audio biz. He can then apply his not inconsiderable smarts to leverage this development into a design that the poor working stiff can afford
I think this is the only way he can rightfully claim some of the market in the affordable class of components.
That's my story, and I'm sticking to it

Cheers,
Thom