Here’s a factor that seems to be underappreciated. Those differences are a lot less important when you aren’t comparing side by side. Just because you can hear or taste the difference between a thing and a more expensive version doesn’t mean you will really appreciate that difference later. Diminishing returns does play into this, and the small differences between two things at a high level is often too small for your memory to even capture.
And even when it comes to the bigger differences, how it affects enjoyment has a large psychological component, in how much satisfaction do you get just knowing you are using something excellent, and does it bother you knowing what you are experiencing could be better.
I have nice quality speakers and headphones, but sometimes I’m lazy and will listen to a piece of music through my crappy laptop or phone speakers. I still enjoy that music. And if that was all I had access to, I’d still enjoy the hell out of music. I’m not about to give away or stop using my nice speakers, but I’m not convinced they make me happier in any significant way.