That value depends completely on how much you travel and how hard you are on your luggage. Ive got even high end samsonite luggage sitting in my garage TODAY next to the garbage can because the metal wire frame has ripped out of the case. My tumi with a bent frame however got me 100% store credit on the retail value (not trade in but full retail) and i have zero tumi bags in the trash.

Here is how that value proposition will play out.
1) Very infrequent travel and not hard on bags...follow your advice above for the best bang for the buck and it will actually work out fine.
2) Very frequent travel and hard on bags, you will likely spend MORE MONEY buying cheap bags and constantly replacing them than you would if you bought once and bought nice. Trust me..i have tried this both ways and done the math. Also for very frequent travelers, one bag for every trip won't work anyway. If you get really into it you will want a combination of larger bags, small bags, back packs, travel packs, spinners, suiters, duffels, satchels, cross bodies, portfolios, briefs, and underseaters so that you can pick excactly the right tool for the trip you are about to take every time, including some that are water resistant and some that are completely water proof in the mix.

Flying commuter airlines frequently will actually destroy made for pilots Luggage works Stealth 22s in about 24 to 48 months (in some situations according to pilots i've talked to...they can last a few years or a decade but everyone agrees the commuter flights destroy them the fastest). Pelicans cases get destroyed under those circumstances also. Your Costco or Ross bag ain't making it 4 months under those conditions.