We might all end up in a hole in the ground but we shouldn't be afraid to enjoy life along the way.
I don't have a $30,000 watch but I bought a watch that was more than $30 and was more than I thought I would ever spend on on something that simply told the time. Six years later and it still feels good every time I put it on.
It is absolutely right that true happiness is not found it material things and it is found in relationships. Perhaps I am simply justifying being a materalistic consumer but nice things are more than just material. Yes my $30 casio tells the time but my mechanical watch fills me with awe at the inginuity of humans that we were able to use springs and gears to map the rotation of our platet! It inspores me. Things that are beautiful, well crafted and yes maybe even excessive can remind us that life is about more than just function.
You don't need nice things to live a full and happy life but you do not need so shun them to be virtuous.