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To be fair to Leica, I do think it's pretty cool that the even upgrade the camera at all. And extend the warranty at the same time. Granted, at that price, outrageous, but it's a change from the disposable economy we have. Though I do think the prices partially reflect why we have a disposable economy - when it comes to upgrading mass produced, complicate electronic items, it's cheaper just to swap out whole boards and subassemblies than it is to troubleshoot and fix the broken resistor (etc.).
As far as Leica goes, the lenses are pretty good. Maybe not the best, but consistently good across the line. This goes for newer lenses - ones that have been designed in the last 15 years or so. They can be expensive, but a lot of people buy used. Though still expensive, at that point, they are in the same ballpark as some of the more expensive Canon/Nikon offerings. The 14-24 is in the $1800 price range. So is the 70-200 VR, the Canon 70-200/2.8 IS, the Canon 24/1.4 II, 85/1.2 II,... A lot of the other Canon offerings are up in that price range too - and let's not even talk about the super-tele's. A couple months ago, if you were willing to buy from England, you could get a brand new 50mm Summilux ASPH M, with warranty, for less than $2k.
Anyway, Leica prices HAVE gotten ridiculous, but they really weren't all that bad about 3 years ago. I think a lot of the pricing has to do with exchange rate and economies of scale. I know other small volume German manufacturers' pricing on products have basically doubled in the last 5 years due to the weakening dollar and strengthening euro. Mic manufacturer Schoeps comes to mind. Small volume manufacturers in reality aren't competing for market share - they already lost out that battle, and trying to absorb market fluctuations in order to compete like that would probably kill them. Canon can weather those storms a lot better and do what's necessary to keep costs (and profits) lower in a particular segment for the purposes of long term survival.
That being said, Leica prices are ridiculous But the newer lenses I've used on M are fantastic. You only need one or two, and then you can pad out your kit with fantastic CV lenses.
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