This is one of the most boring videos I have seen in a long time.
What's his point again?
Seriously though, you can get into cycling pretty cheap by buying used and knowing what you are looking for and stumble into a deal. You don't have to buy new everything all the time. The more expensive stuff generally works better though and is nicer. Does a 2k bike work better than a 1k bike...sure it does. It probably has better wheels, better component spec, and the frame is generally better made. Not always, but generally. Now, a thousand dollar bike will work fine especially if you learn how it works, how to do a good tune up to it, and how to true wheels. A good $1k bike with quality tires will ride nicer than a $2K bike with crappy tires, provided they are both fit right to you.
There is a principle of diminishing returns here. $500 will get you a hell of a lot nicer bike than the $100 WalMart special. $1k will get you a bit nicer bike than you can get for $500. $2k will get you something noticeably nicer than $1k, and probably good enough for 90% of all casual riders. $10k will shave seconds off the time of a world class athlete climbing Mt. Ventoux. It would be worthless for me unless I was inclined to own it for the cool factor, and had money oozing out my pores. Think 60 year old heiress tooling along at 55 in a Ferrari.