To borrow your example, it's as if Mercedes started giving every 4th customer a Lada instead (after the papers are signed). The expensive Mercedes market would quickly no longer meet the luxury demand of wealthy buyers and collapse. Not the least because Mercedes would start showing super-normal profits, and all other luxury brands would get in on the same business model. It's a race to the bottom. When one seller decreases the quality, so must others. Otherwise, they'll soon be bought out, and that's the best-case scenario compared to being outcompeted.
There is some evidence that the expensive software market has collapsed. In the 00s and 90s, we used to have expensive and cheap video games, expensive and cheap video editing software, and expensive and cheap office suites. Now, we have homogeneous software in every niche — similar features and similar (relatively cheap) prices. AAA game companies attempting to raise their prices back to 90s levels (which would make a AAA game $170+ in today's money) simply cannot operate in the expensive software market. First, there was consumer distrust due to broken software, then there were no more consumers in that expensive-end market segment.
Hardware you mention (iPhones, Androids, Macs, PCs) still have superior and inferior hardware options. Both ends of the market exist. The same applies to most consumer goods - groceries, clothes, shoes, jewelry, cars, fuel, etc. However, for software, the top end of the market is now non-existent. It's gone the way of expensive secondary market (resale) cars, thanks to how those with hidden defects undercut their price and destroyed consumer trust.