Since PIII hit the GHz limit the compelling nature has gone way down as a result I don't upgrade my computer often I just moved on from a Core Duo laptop this year. I buy lower mid-range hardware now PC wise.
This is why more choice, not less, is a good thing.
Know the real reason why your lower-to-mid range hardware is as cheap as it is?
Because people's demand for the newer/faster hardware pushes the demand/cost of yours way down. You enjoy the low cost at the expense of those pushing for newer/faster/better.
If not, believe me, the same companies would GLADLY charge you an arm and a leg for your 'older' hardware, because that would still be the current 'high end'.
You're right that lots of people simply don't want or need the newest stuff- no problem. I also keep older stuff working for me as long as I can before upgrading it.
But as far as my main computers and phone- I want the best I can currently get. Right now, a Sandybridge system gets my work done perfectly, and rendering times for video are faster than the system it replaced. A newer Ivybridge would be incrementally even better, but I have no real need yet.
Like I said, my new phone fetches info for me quicker, reacts quicker to my input and therefore saves me time. Not everyone needs these things, because a lot of consumer tasks don't require a hardware speed increase- but many of us do need to stay current.