Disney prices are expensive all around, compared to non-Disney resorts in Orlando and elsewhere.
But there are a lot of people with a lot of money in this world. It doesn't surprise me that they're willing to pay even rack rates at these places. Despite its faults, WDW is really a place unlike any other, and there isn't really a cheaper alternative. For many, WDW is a one-time, trip of a lifetime, core-memory-for-the-kids kind of thing. And people who have the money are happy to blow the cash to stay at the top-tier resorts in order to make it the best it can be. Also, there are plenty of people who might not technically have the money for it but are willing to rack up the debt to make it happen.
Many years ago we took advantage of a a great bounce back offer to stay at a deluxe resort at a discount *with* a
free dining plan. I will say it completely spoiled us and we have only stayed at deluxe resorts since then - BUT that is only because we started renting DVC points. Deluxe would be out of range for us otherwise, and I say that as someone who 1) truly values a nice resort and is generally willing to pay more to get more, and 2) as someone whose household now has enough expendable income to afford annual vacations at this point (definitely not always the case for my family, this is a relatively new development).
Quite honestly, we might be skipping Disney entirely if it weren't for the ability to rent DVC points. Normal deluxe rates are too high for us, but for various reasons (no balconies, no elevators, etc) most of the moderates/values are less than ideal for us. For the prices you pay for even moderate/value resorts, I'd have a hard time dealing with lugging my double stroller plus two kids up two flights of stairs at the end of a park day, when I know I could stay off-site at a resort that offers more convenience, for less. At that point it's a question of whether we would want to go and stay off-site (which would probably bum us out bc we like the Disney bubble) or just spending our money elsewhere.