Sure, programmers like sweet and short domains, but customers don't care if your domain is widget.com, widget.net, widgetapp.com or companyname.xy/widget
Spending 5000 on a domain name is probably not worth it for the vast majority of startups.
There are some exceptions. If you are an email provider and your customers will use the domain in their email address it probably is a good idea to get a good domain.
But I really don't think that domain matters as much as founders think they do.