i would never buy GUITAR that will cost more than "MY TALENT". nyahahahhahah
i'm a firm believer in this as well.
iMHO, if you can afford it, it's best to buy gear "above" your talent, in fact, the best that you can afford. Otherwise, you are short changing yourself. Better gear can inspire you to persevere and motivate you by making it easy to play and sounding good.
Again, that's only if a person has a choice. If he can't afford it, that's a different matter. But even the old bluesmen bought the best guitars the moment they got enough cash.