Not ever going knock someone for using their phone or a Timex to keep time, you're 100% right in practical terms. That said, your argument can be applied to almost anything. Cars? Housing? Fuzz weren't you on here once talking about a bicycle that cost $8K?
I've been into watches as long as I can remember, originally stemming from my Dad. Has always been cool to me that a nice watch, if cared for, will outlive it's owner and then some. Something with a story. Inherited a nice watch from my Dad when he passed, one I saw him wear every day and brings back a lot of good feelings when I pop it on. Bought nice watches when each of my kids were born....will someday pass them along myself.
Anyways, people don't seem very nostalgic anymore at least in terms of heirlooms, collections etc...if having a nonsensical collection of some kind is weird by today's standards that's fine by me. I know I'm not going to lose any sleep on my deathbed that I dropped some coin on something my kids (and beyond) can enjoy long after I'm gone.