As someone who spends well above your $220 mark on any video card he buys, I agree with your scale. In reality, I could play through all the games I own (there are many, ranging from very low (Defcon) to very high (Crysis Warhead) demands) on a card costing far less than the one I currently own.
I do contest that I don't have any sense though, buying high end cards. (For the record, my current card is a Radeon 4870x2. I bought it used, if it helps.) Really, it's an issue of priorities. A person doesn't need 250hp in their card, or a 60" LCD to watch movies, or a 3000+ square foot house for a couple, or whatever. You can drive, watch movies and sleep at night with far more modest versions of those things. I take the bus, I have a small "home theater" (sort of) and I live in a relatively modest one-bedroom apartment with my girlfriend. I like playing games though - it's escapism. It isn't even just escapism - I'm awed by how powerful these system have become. I like tweaking my system for maximum performance. I like running games maxed out at 60fps, and then modifying them to push the visual quality up even higher.
I'm not saying that everyone should do what I do. I'm not saying what I do makes sense for most people. Almost everyone has a guilty pleasure though, into which they dump their disposable income. Mine is my computer. My girlfriend's is books and movies. I have friends that blow their extra cash on bars, or on clothes or on their car. Those are valid too. It's just a choice.
I'm not calling you out here, I don't think you meant to insult me or anyone else. I'm just... giving you the perspective of someone who likes high-end gaming hardware.