I'd never call you a loon, we all have different priorities in life. Some of us prefer to buy food to live ;-) Seriously, I could spend £500 on a loco, but I couldn't bring myself to do it. I, personally, just do not see the value in doing so. If I had a spare £500, I'd probably prefer to go away for a weekend or get a cheap hotel in London and go do some research at the National Archives for a few days. I have wide and varied interests, but the bottom line is I have a fair understanding of the cost of China manufacturing these things and I just balk at these fantastical prices. If Hornby are only just breaking even, I would say that they need to have a look at why their business is so poorly run.
However, if model railways are your passion and you have the disposable income, I would not begrudge you blowing a wad on something you really desire. The only point I have been making here is that I could not do that, and I don't claim to be in any moral majority.
I had to smirk about the concept of the lines being wrong, still, as I don't know how to break this to you, but the models are also far too small to be realistic ;-)