I don't think that's entirely accurate in that it appears you're suggesting people going for the Micro iDSD can't afford the Chord? (if I'm wrong, forgive me). As someone who also enjoys full-size systems, as I think a great deal of head-fiers do, I can say with certainty that the great thing about head-fi is that literally everything is inexpensive, comparatively.
Sure, one is literally 5x the cost of the other, but $2500 is already pretty cheap for the sound quality you're getting, compared to what you'd spend in full-size gear to achieve the same sound... And $500 is just insane. Bottom line, there are many people who have both in their budgets, but after comparing both, went for the IFI, and saved $2k.
Personally, I'd heard the Hugo, but didn't have a Micro, so I rolled the dice based on what I'd read. I was blown away, but just for laughs, I carted it over to listen to with the Chord. The reports are true... It's that good.
I'm not sure how long you've been into hi/head fi, but in my experience, most audiophiles at least listen -and often buy- across even greater price ranges. Price is a very poor indicator of performance indeed. Case in point- several years back, the Senheiser HD650 represented a flagship model. It can be had for $335 on Amazon, right now. It happens to pair best with Bottlehead Crack tube amps, which can be had for roughly the same price. Figure another $150 if you score ebay deals on good tubes. $30 for incidentals, I always like to pick up brass footers for isolation. That's $850 for a rig that is still one of the best sounds available, at any price. Do modern competitors beat it? Many do, sure. But many also don't. And most cost 4-5 times the price.
Second case in point- and this one is personal: probably my favorite headphone of all time (and I've owned HD800, LCD-2.2, Oppo PM2, and spent a good amount of time with my dad's Stax), is the German Maestro GMP 8.35 D. Available for $249 at Amazon. I got mine on flash sale for $189, shipping issues knocked it down to $130. That's less than a well-priced headphone cable. Sure, it's a closed back and doesn't have the sound-stage, nor the sophistication of the rarified cans mentioned above. But it has a magic quality- something about it's signature is just eminently listenable. People who hear it, love it. I always end up listening to it regularly, regardless of whatever top-tier can or IEM I currently have in my stable. Like I said, this one is personal, not many people are aware of the GM 8.35, unlike the widely recognized HD650/Crack combo, but the point is, I think many audiophiles have similar stories. That one can or amp that cost almost nothing, and just takes on all challengers.
Price just doens't work as a gauge of sound...