A few examples along my hifi journey:
1. I started the journey half a century ago with NAD and Yamaha equipment, never expecting it to last for long. I loved my French Elipson 2-way speakers which survived many upgrades.
2. I entered the world of High End with a Roksan/SME V/Koetsu Black turntable with NAIM amplification.
3. I then met Max Townshend, ingénieur-bricoleur by excellence, whose radical designs blew away the established competition. His turntable was a marvel, his cables were among the first to be cryogenically treated, his seismic platforms were groundbreaking (pun intended) etc... He taught me to trust my ears and each of his products was a revelation. I vividly remember how his loudspeaker cables sounded much better in my system than Nordost loudspeakers at the same price point (or the NAIM loudspeaker cables I had used until then; from then on, I was sold on cables). Or how his turntable performed better, to my ears, than a TechDas at 5 times the price (with the same cartridge and tonearm cable installed, into the same system). Or how he replaced the cable within my SME V with a cryogenically treated silver cable. Or how his platforms and podiums elevated the enjoyment of my system (I still highly regard them).
4. I now reached the end of my journey: Nordost Odin Gold cable loom, Nordost QB10 distribution block, Nordost QRT, Nordost Sort, Nordost TC Kones, Neo rack, ACapella platforms, Acapella horn speakers, Burmester 218 power amplifier, Clearaudio Statement turntable with Clearaudio Diamond Jubilee cartridge, dCS Vivaldi Apex 3-piece suite.
So, the answers to the question are, imho, as follows:
a. Small companies can be innovative and competitive and deliver excellence at far lower price points than the established brands. Their mid-priced products should appeal to the vast majority of hifi enthusiasts. Unfortunately, they lack the marketing clout to break through. But the discerning consumer (m/f) will find his way to them if he trusts his ears. He will be richly rewarded.
b. As I became economically more secure, I gravitated to long-established companies with an excellent aftermarket reputation and superior manufacturing standards. Clearaudio is second to none in that respect. Or take dCS. When, in 2016, I visited the dCS factory in Cambridge, I decided to buy the Vivaldi transport in the knowledge that the manufacture of its Sony chip/TEAC Esoteric VRDS loading mechanism had by then been discontinued. But I had nothing to fear: dCS had bought the whole remaining stock at a cost GBP 1 mio, in part to be able to service the transport in the future.
c. To those who begrudge the happy few splurging on expensive audio equipment, I reply:
c.1. Upgrades always mean that excellent 2nd-hand equipment comes on the market, often at a fraction of the price of new.
c.2. Innovations/ ameliorations tend to trickle down a brand's product range to the benefit of all hifi-enthusiasts.
c.3. Without the support of high-end audio consumers, innovation/amelioration and excellent craftmanship would not take place.