>My biggest issue is that, like so many markets, there is a "missing middle" created by this downward price pressure.

I would wager that this is a proxy for the housing market. It's correlated with renting (majority) v/s buying (minority). And renters don't want the middle. That's pretty much how I view everything I buy. It's ephemeral.

>I think one reason Ikea is so popular is that they ride the upper end of the cheap segment.

Also, Ikea gets the mechanical designs right. I have been quite impressed with all ikea furniture that has folding contraptions. Their nyhamn futon used to be quite a steal at the old price of ~$200. The finnala sofa bed is also well made. And ikea tends to use removable fabric covers, which is also great. So ikea gets a lot of design right. The only bummer is their 1.5x price inflation since covid.