Actually my experience has been that right or wrong, people buy the house they want to live in and not necessarily the cheapest one. If the 599 is the one they like the best for some reason that it makes it unique to them then that is the one they will buy. A difference of $25,000 or less typically wont sway people’s choices. Renter’s dont put so much emphasis on the house because they dont expect to be there more than a year or two. Most buyers expect to remain in a house longer than they probably will actually stay there.
Everything you say makes logical sense but people buy homes emotionally and their decisions often dont make sense. I cant tell you how many times a buyer has told me what they NEED and what they WONT buy only to buy exactly what they say they didnt want.
Same thing with cars….you go in looking for the economical car and leave with Sports car touring edition.