I think like a lot of you are saying is right, most people think they have something that is worth a lot more money than it really is. I own what most people would call a 'junk' horse. She's 11 years old half perchon and half paint with no papers that I bought for $300 off a lady that couldn't afford to keep her any more. I've gone on trail rides with people that had a lot more money than me in their horses, then Gypsy and I stood there and watched their high dollar, well bred, professionally trained horse act like an idiot.
That said, if I tried to sell Gypsy, she is a 'junk' horse, and I'd probably only get $300 to $500 for her. Noone would want her. Most people that can afford to feed, shoe, and care for a horse would spend the extra money to get something 'better'. I have never found a better horse, she does exactely what I want her to do.
Long story short, There's nothing wrong with having middle class or lower middle class horses, as long as you realise this and are willing to admit it. I also usually don't pay attention to what horse 'experts' say when talking about stuff like this, most of them seem to have no idea what they're talking about. I just agree with them and enjoy my junk horse when they're not around.