it's fine.

velo-cult in san diego does the same thing. they "re-created" a schwinn traveler for $1500 a few years ago that is probably still in their shop. i think that's a little crazy, but the OP's example isn't too far fetched.

lots of folks aren't into fixing up bikes. lots of folks like classic stylings. lots of folks like nice paint. lots of folks have more money than time.