Even if I had the money I'd be a fool to buy a £500 bat just because I could.
I've seen a trend for this very thing in my other hobbies (fishing and playing guitar) where high-end luxury items have been created to cater solely for a market that wasn't around 5 years ago. These ultra-expensive goods are no higher performing than most mid-range models but are catering to our increasing dependance on material goods for self-gratification.
The sort of person who thinks paying for £500 bat is justifiable is going to want something even more expensive down the line because they have that type of mindset. Where all this ends I've no idea.
Recession? What recession?
I agree that a very expensive product will be made, and will be given a tiny little 'niche' to justify the expense and to hook the buyer.
E.g. The signature bat. Batsmen are used to model and advertise their products, but the product they use is not what they advertise. So now a kid who may have wanted the Icon because this or that batsman used it, but now will they want a signature because that batsman actually doesn't use an Icon....