There's a surprisingly large market for high end parts in communities nearby velodromes. As a track racers, I don't think it ridiculous at all to spend nearly as much on my track racing bike as I do on my road racing bike. People who race on a velo, are willing to shell out for frames like a Vigorelli or Mash or Pista Concept; the same way they are for BMCs SLTs, Cervelos R3s, etc. on the road.

The FG on the street scene is a dipole between sub $1k bikes and over $1k bikes (abitrary division), the difference between the two parties is the functionality to race these bicycles at a higher category level, (track or cross ss). Lots of people like to build velodrome caliber bikes to ride around on the street, it's impractical but, hell, it's fun.