There's a certain logic to "Sell to people who can afford to pay high prices, as they're the ones with the money" product development.
Conversely the history books are littered with the names of out-of-business companies who thought their particular fashion of overengineered, high-cost, high-margin product would always have willing buyers. And were wrong.
Apple Computer was almost one of the but they pulled it out. How many people have heard of "Apricot Computer", though? They used to make some very innovative computers also
Over-engineering or "conservative-engineering" whatever you want to call it _can_ make for a high quality, reliable product but it isn't a guarantee of anything intrinsically. it can also make ya soft and inflexible and flapping in the breeze when a competitor figures out a way to make the same product at 2/3rds the price.