I believe that to understand Festool's ludicrous ability to persuade people to part with their hard earned is all to do with market behaviour.
Think back 20 years.....when a battery operated drill took 12 hours to charge and held that charge for about 3 turns of a 1/2" screw!! (with a pilot hole).
The innovation rate has been exponential and consequently the market has gone from the Yankee, Estwing and brace and bit to all singing and dancing colour co-ordinated "families" of tools in wheelie bags that share the same battery connections and Paslodes etc.
Just like all markets.....they evolve. The pro builders were the early adopters of "serious" drill drivers and it seems to me that Dewalt pretty much dominated in that world with Makita, Hitachi even Mafell etc all there too. I've renovated one an built from scratch two houses since starting 1990 and I've watched Dewalt grow and grow on site through that time. More recently Makita have had a surge but they seem to suffer quality problems so its up and down. Meanwhile...sailing along the top of all this commodity activity on site is both the workshop folks and also the hobbyists. Lest we forget, the cost to entry barrier on not just hand held power tools but machine tools is now so low, relatively, that the weekend warriors can have at it...and do. Mass internet media helps spread the news fast as do forums like this one and very quickly the market starts to get a real feel for whats at the top and whats at the bottom. The Germans (cars, white goods etc) are absolutely superb at getting the marketing right to occupy the premium niches in their chosen markets and Festool have done exactly what BMW, Mercedes and Audi did.
They have somehow captured a certain feeling of "cache" with their tools which (in my opinion) allows them to get away with a premium that has a component of goodwill in it and is unrelated to better quality. They do have a justifiable quality premium to be charged in my view because their tools are dam good there's no escaping that. Well engineered, great quality. I just don't think their chopsaw is worth £1200!! Maybe £600 as a premium but not that greater difference to its competition.
So, in short, the Jerry's have done it again.....someone had to occupy that upper niche because that's the way markets work....could have been Mafell, but they didn't understand the market and play to it in the way Festool did. This is easily as much to do with status as it is to do with quality....Festool have identified themselves with the "status tool purchaser". They've positioned themselves brilliantly and they net a new sucker every time Mr Parfitt bangs on about how he would happily mortgage his house to buy whatever they produce next. So in my view, good...but not that good.
Personally, I own one piece of their kit...the domino and I sold my hollow mortiser for it. I don't regret that for a second as it's a genuine innovation that makes life very convenient and fast. I've a mate that swears by their sanders because they're light weight for ceiling work but I'm not convinced about anything else. Would I like to own more? Sure, if someone else is paying!!