I think there is a balance here. I have experienced Delta and am grateful for their relatively liberal policy with this.

I had a bag that was lost back in 2019. I was heading to a very important meeting. They took my carryon bag in one airport, and it was lost. Inside my bag were my cell phone charger, interview clothes, etc. When I landed the bag was missing. Truly missing. Nobody knew where it could be.

I was grateful to Delta that they paid for the purchase of a new suit and tailoring, dress shirt, tie, belt, etc. as well as a charger for my equipment. It made me more loyal, and in these circumstances I felt these items were necessary. I did not ask Delta to pay for other items I bought which were necessary to my enjoyment of the trip (gym clothes, bathing suit, etc.)

As I was leaving and about to fly back home, I got a call at the gate that my suitcase had just landed at the airport. Someone brought it up to me at that point since I was already through security. I was pleased to have my bag returned.

I do think sometimes people go overboard with these circumstances. I have had friends put through excessive purchases - designer clothes, etc. Delta as I recall also has the ability to deny some of these claims if they are not viewed as "reasonable", but I believe they usually approve most of them.