Yeah for a while I threw all my computer reciepts in this big briefcase looking thing... one day I decided to go through it... well turns out I had years and years of receipts kicking around. I found my receipt for a 486-dx2-66 chip... $410. At the time I saw the receipt I think I was using a P2-300. Anyway, I had thousands and thousands of $ of receipts, and almost none of the hardware anymore. That sort of clued me in to the insanity of it all. So for like 2 years I didn't buy anything computer related, and couldn't be happier. Hehehe. Every once in a while I'll have a little fit of buying computer stuff, but my new rule is to never buy anything that I don't absolutely need, or isn't a ridiculously good deal. The absolutely need things don't come along very often, and the good deals I usually don't regret down the road since they'll effectively retain their value. My first CPU upgrade in 2 years was one of the $500 gateway 933 servers, which I figure will be worth it since a year or so down the road I can just pop in a second 933 chip.
The funny thing is that I used to be entirely on the other side of the argument, I knew computer people with all this outdated hardware and I just didn't get it. But eventually you see the light and realize there are better things you can do with your money. Especially now that 99% of my computer time is "on the internet" there's a baseline for performance that you need (like a nice P2-300) and you can survive just fine.
And if you're like me and still want to have fun with the "extra money" that you were dumping into computer gear, you can buy some pretty kickass tangible stuff. The latest and greatest video cards cost about as much as a decent 27" TV. Plus almost ANTYHING else will be a better investment than computer hardware.