If it's "just" a guitar, even if it's a super-fancy Les Paul or whatever, yeah... it does get to a point where it's a bit ridiculous. Beyond a certain point you're not buying sound or even playability, but buying really nice woodworking. Curly / Flame maple tops look beautiful, but do they sound better than the flat-black painted version? Not to my ears. I pick 'em by ear, not by eye.
Yep, spot on. The only exception I'd make is if that fancy woodwork inspires you to pick up the guitar and want to make music moreso than a regular-looking one then maybe it's worth the extra money.