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Scilly.Suffolk
frankenbike
Let me assure you, the wheel is only worth what I paid for it. It's a total piece of shit. The branding - "Redneck XC1" - tells you all you need to know.
But seriously to respond to your actual point, this bike is going to live outside and will only ever transport me to the pub, the shops, and 5k each way to work. It's not worth buying nice parts because a) I want absolute minimum theft risk b) I'm not going to treat it delicately - ideally I won't even bother cleaning it c) I don't care if it rides slowly or horribly d) the other (more important) parts are shit, so using one nice part won't stop it from riding slowly or horribly e) I'll have a supply of casts-offs from my other bikes that can go on to this one, so I don't know how long a given set of parts will stay on it f) other reasons etc.
On a real bike I agree with you. It's kind of like the reverse of the sunk cost fallacy I suppose.