It is the same with many items including bows, arrows, quivers, guns, optics, tents, stereos, TVs, automobiles, and more items than I could ever list. Each product in a category does most of what you would need such an item to do. I can see out of a $200 pair of binoculars well enough to do most things, but I have paid $2000 for a great pair. What's the difference? I know the difference and to me it is worth paying far more, but I could have done about as well with the cheaper binoculars. Just about any car would get me from my house to work and back, so why would I pay tens of thousands of dollars more for a particular vehicle? I think we all know the answer to that. Same thing with a bow. There are very significant differences between most bows that cost $500 and those that cost double or triple that amount. I have found that the last 10% of benefits are usually more expensive than the first 90%, often by multiples. Only you can decide whether the cost is justified.
Some bows offer far more than what their price reflects. For example, I think Chad-Holm (Holm-Made bows) makes bows that are huge bargains for the money. I can't believe he can build such a nice bow and even make a profit. Most bowyers, even the ones selling their bows for the highest prices, are not making much in profit. The increased prices usually reflect more expensive materials, more labor, or higher equipment costs. All of the custom (or semi-custom) bows are bargains when you factor in what it takes to produce and market them.
The most expensive bow I own is the most beautiful, but it is not the one that I shoot the best. There are some people who think this make of bow is the best shooting one around. I wanted it because it looked the best to me, not because it shot the best for me, and I was willing to pay a lot to get it. Most of my bows are a combination of what I think shoots best and looks best. Those bows get expensive too.
Can a bow for under $500 satisfy a hard core hunter? Sure. If I had to hunt for the rest of my life with only a $450 Holm-Made Osprey, I would be happy. I know there are other bows out there that are huge bargains like the Holm-Made bows.
Allan