While I understand and perhaps agree with your larger point, I have to disagree with this claim. LV stuff is expensive, yes, but the product is very good quality, and comes with what is essentially a lifetime warranty.
Yes, LV is several times the price it "should" be. Problem is that everything else is also several times the price it "should" be. In the larger context, I don't really think LV is particularly bad value, or that the sale price/actual cost multiplier is that much different.
And there is simply no such thing as a good handbag for $100, for pretty much any definition of "good" (substitute briefcase if you are male). To sell at $100, the manufacturing cost of a handbag would have to be maybe $10 or $20 max - whatever you think about LV you cannot possibly claim they cost only $10 to make.