The cost of Leica digital cameras is reasonable. (ed.: And when I say reasonable, I mean to imply it makes sense in the Leica universe, not necessarily in relation to other gear.) To wit:
Over time the cost of shooting an M9 will be less than the cost of shooting, say, an M7 or MP (given the processing, scanning, storage, etc. of film). The MP
is a $5,000 film camera. The $2,000 premium for the M9 (msrp $7,000), essentially a digital version of the MP is not very steep, considering the base price of a new Leica body of any kind. The question asked in this thread (admittedly, I've not read the whole thing) is either easily answered or the wrong one: all Leica cameras are expensive, the digital models only slightly more so than the film models.
The matchless construction, quality materials, hand manufacture in Germany and Veblen
quality all explain the price of Leica products generally.
If I could expand from personal experience, the M9 is a terrible camera. The low light performance is mediocre (but not unusable as is often said). It is slow. It is finicky (see: SD card fiasco). It is not built as well as previous Leica cameras. But it is demure and understated, quiet, elegant and small. The wide angle lens offerings are unmatched. Legacy lenses from the early Leica Standard
days of the 1930s work flawlessly with simple adapters.
But most importantly from a consumer standpoint, it's the only option available. No other manufacturer has a full frame rangefinder in the M mount. (The Epson R-D1
was a worthy challenger, but it had a crop sensor.) Zeiss and Sony could produce a cheaper alternative based on the Sony sensor and the Zeiss Ikon rangefinder, but the production of such a camera would surprise me. Even in the presence of a competing rangefinder, the digital Leica would still cost $7,000 or $8,000.
Leica pricing clearly isn't related very closely to the competition's offerings and market value, but rather to the value Leica itself assigns its products. Clearly a dedicated (and, for the most part, well-heeled) clientele has demonstrated that it will repeatedly pay Leica's asking price.