What is your experience with the law of diminishing returns ?


As subjective as it might be. Personally, I have not encountered it yet.
inna
inna
I have done what you said in your first post and never have looked back and yes it was worth it.
methinks I could spend about $6000, and for my ears I would have a real kick as Hi Fi system to satisfy my needs.
So, $6001+ is my price point of diminishing returns.


I had musical training for ten years, starting at age 8, so I believe that I have a pretty good ear.
Last year, I had to make a choice between the Magnepan 1.7i's and the 3.7i's.  The 3.7i's are more than twice the price of the 1.7i's.   I auditioned both models at Take5 Audio in New Haven.  While the 3.7i's had a bit more bass extension, I actually liked the high end of the 1.7i's more.  In my opinion, the difference in the sound didn't justify spending more than twice as much.  I've had the Magnepan's for a bit over a year, play vinyl and SACD's, and I'm very satisfied with them.  There is a point in high end equipment where the equipment is so excellent that spending a hell of a lot more doesn't improve the sound appreciably.  
This is unusual, I think, same brand speakers for half the price being preferable overall. Were the electronics source and cables the same when you were auditioning ?