I've been meaning to post on this thread.
I think the extra cost *can* be worth it. For 99% of us we will never be more than hobby strummers. That doesn't mean we want to aspire to mediocrity but just that life hasn't dealt us pro-ukulele status. The way we get past the mediocrity is a lot of practice. Where the value of higher end instruments comes in (at least for me) is that they inspire us to pick them up and play them. A higher end instrument (most of the time) sounds better and is more forgiving of our errors. That same wiggle room that forgives us also allows us to be more creative if we have the skill. An example is a guitar my father gave me.
Dad gave me his old Ovation guitar he's been playing for years. He's always made it sing. He recently upgraded to something else that is much nicer. My girlfriend and I have been trying to learn guitar a little on the old Ovation. I'm not that good on it. When I go see my Dad and I pick up his new guitar I can play it better than the Ovation. I sound better. When I go to the Guitar Center I pick up some of their higher end guitars and suddenly I sound really good compared to my real skill level. My girl is the same. I could play some of those nice Gibsons and Martins and Taylors all day long. They are all way out of my price range. As for ukuleles I've found the same to be true.
Now that I have a Martin (ok it's an S1 but still I love it) I practice far more often than I ever did. In fact I play almost daily and have a hard time putting it down. I've even been scolded by the GF because she doesn't want it in the bed with us lol. But to be honest my playing ability has improved greatly in the past 6-9 months compared to the 10 years I've been playing an ukulele. Maybe it's just the headstock logo that inspires me? I dunno but the nicer instrument (more complex sound, better finish, nicer shaped neck, etc.) tells me to pick it up everytime I pass by. On the other hand...
I also have some laminate beater ukuleles all over the house, including the bathrooms (don't judge me). In their own way they inspire me to play, too. They're just sitting there and the inspiration I got from the nicer ukuleles carries over and makes me want to work out some rift or chord progression on the beaters, too. So my take on it: buy the best ukulele you can afford in the size you play the most as a muse, then also buy some cheaper ones that sound ok (I really like my Bad Aax... sounds much better than the $50 price tag, I like it better than all the the dolphins I've played) you can hang around in different rooms.
Btw, barefootgypsy I think you are right this place does inspire us to purchase more expensive ukuleles. I'm not sure if it is grooming us, but it sure does make you want one of those nice K-brands. The trouble is we get to hang out with people that seem to have unlimited ukulele funds and they share their awesome toys with us and makes us want them, too. I need to figure out what some of these folks do for a living because I want some of these awesome ukes!