(no subject)
Like a lot of other "vintage" equipment, such as classic recording studio microphones from the 1950s and 1960s (Neumann, Telefunken, AKG), the Leica cameras represent the ultimate from a particular era. The thing about mechanical devices from that time is that they were made in a method and to a standard that has been unsurpassed before or since. Modern mechanical machinery and age-old traditions of craftsmanship came together in such devices. And they were made before computers came along.
Today, regulation of mechanical manufacturing is far beyond what it was then, but such precision is not needed for "simple" mechanical devices like cameras. Instead, we use our abilities today to make computer chips and micromechanical assemblies.
Another thing too is that small companies could once exist by making very high-quality products for a niche market. This is much more difficult today due to a very different economic climate. We live in a consumer society today.
Thus, things like old tube radios, microphones, cameras, and even cars represent something that we think we've "lost". And the look and feel of these devices speak of how they were made and from what materials. You often hear the term "patina" when describing these things, after the outer chrome or paint has worn off a bit, or the brass starts to tarnish but is polished where the hands have touched it thousands of times.
In terms of the actual value of these things for their function, when compared to modern equipment, they often do not compare in a "real" way. However, people's emotions are always involved when placing a value on anything. Thus, there are many who are willing to spend a lot on old cameras, especially if they are from Leica or Contax, for instance. And the true "supply and demand" is what drives the prices. People want these things and are willing to pay for them, so the price is high.