The mind is a powerful thing. It can be the same in anything in life. Why do people wanna wear Gucci? If it was 15 bucks for a Gucci shirt, would people wanna wear it? Probably not. Do people go after clothes from JCPenney with the same gusto? The value concious people do...You can argue that Gucci may or may not be more stylish, but in the end cloth is cloth. In this case tobacco is tobacco...some people smoke what they do for status, some don't..some genuinely prefer a certain kind of tobacco. But you're right, the mind is a powerful thing.
This argument is age old and will continue to be until the embargo is lifted. This argument can also be related to just about anything in life where you have two similar products with one being expensive/hard to get and the other not so expensive/hard to get.