Great read Mike, as a hobbiest that is fairly new to reefing(about 6 years) I did not get to experience much of that, sounds like a lot of fun, but I have made friends through several LFS and really enjoy the hobby.
I know of shops here in California that sell frags starting at $5, you're not going to find something crazy colored or huge but a healthy coral is a healthy coral. Which I find crazy considering the cost of living around here. I think that one thing left out of the equation though is inflation, $5 now does not equal what $5 equaled 20 years ago. I remember getting gas for $1 a gallon but now it's three times that on a good day. So to me a $20 frag is the same as a $5 frag 15-20 years ago. Our dollar is not worth what it used to be. But like with anything in this economy demand drives the price. If someone is willing to pay that much for it then it will get sold for that much.
I also think that in the past trading worked better because there was no market price set for anything, everything was new and exciting you hadn't seen it a thousand times yet so everything was cool. Trading any piece for any piece probably seemed much more fair at the time. But not every coral is as easy as the other to keep and grown. As technology and understanding of the hobby has gotten better we are seeing more and more colors come out of coral that was simply green or brown before. Corals like acropora can't be kept by even beginners. Hobiests are putting their time and effort into coloring these corals even paying crazy power bills just to keep everything alive and growing. At some point this starts to add value to the coral, your time, effort and the money you spent starts to become a factor. For some it's an investment they buy a cool or named coral with the hopes of growing it out and selling frags later to help support their hobby, some even do it for a side business to help out their family or some extra money when they're retired.
Although I do not buy these "high end" or "designer" frags myself I can certainly see why people like them, they sure look pretty under those blue lights. Sometimes much better in person than a picture can capture.
I believe the hobby is evolving, into an industry that caters to both regular customers( like me) and people that want to be in a "high end market". You see it everywhere else, why not in reefing. There's always gonna be rich guys that wants to brag about the expensive things they buy, why can't they have their fun too lol.