> They are buying for style and recognition.
That's too simplistic. There's actually quite a few people who prefer Beats' audio, none of that really has much to do with audio tech, but rather with equalizers.
i.e. it's not just style or fashion, it's also sound that really matters. There are quite a few 'blind test' videos on youtube where people prefer the Beats headphones to the technically superior ones.
That doesn't mean that when people prefer Beats' audio, that the audio is 'better', it's just 'better to them'. An objective standard of good audio one could argue is audio that sounds 'as it is', which is where Beats fails. Beats doesn't do that, it deforms the audio to make the bass heavier. And so lots of popular music with young people who like bass, sounds better with Beats, than a more natural headphone which recreates sounds much better.
In short, yes Beats is also about audio, and it's not 'better or worse', just like there's taste in food, fashion, style etc, there's also a taste in audio.
That doesn't fully explain Beats' popularity, of course. There are cheap headphones with equalisers that are bass-heavy that aren't as popular, and that can all be explained like you did with differences in style, fashion, recognition etc. But only mentioning this fails to recognise that there are groups of people who genuinely prefer deformed sound and prefer Beats' audio over even more expensive, technically far superior headphones' audio, regardless of style/fashion etc.