rob - Oh boy, what a can of worms!
I will forgo formulating a well-phrased debate and just say that I agree with you on some points, not on others. I will also say that at least one reason I do not think a $550 lugged steel mixte frame is overpriced, is that the lugs alone are a "treasure" nowadays, since they are no longer produced. VO must have either had them specially made, or found the one remaining factory that was still secretly making them. Not sure how they did it, but Bravo! Oh and the fact that your wife got her mixte frame powdercoated not-royal-blue when given a choice, only confirms that the colour is not really appealing IMO.
Inspired by you, I did contact VO. They were unexpectedly receptive, but there is a problem. I need to get confirmation that I can say what the problem is, but I won't be testing the mixte, to my great sadness.