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So what does a $25k bass actually get you?

Well 25 grand wont get you a Ritter Royal Flora Aurum, you'll need 10x the money to buy it based on its value in 2008.

The Ritter Royal Flora Aurum, was built by Jens Ritter from Germany.

This luxurious bass has a body carved from a rare, solid piece of maple while the nut is carved from 10,000-year-old mammoth ivory.

The fingerboard is decorated with a floral inlay pattern made of 24-karat gold. There's even a black diamond set in platinum decorating each leaf.

The bridge, tuner buttons and knobs are cast in gold. The knobs hold an additional embellishment: they are both topped with brilliant-cut diamonds (3.3 carats)

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If you got the money, I don't see the problem with spending whatever you want on a bass. I've several boutique basses; it gives me an opportunity to specify almost every aspect of the bass and it is nice having an instrument that is very well made will a lot of attention paid to small details. Of course, it does not make me a better player but that is not the point.
 
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A lot of debt?
more likely you already have multiple homes on multi-acre plots in multiple states and/or countries, a healthy and diverse stock portfolio, a financial advisor, a lawyer with whom you speak on a monthly basis, a library in at least three of your homes, your name on a plaque on multiple public/academic libraries, a helicopter, at least one wine cellar in at least two of your homes, a Porsche, a lot of paintings and sculptures, a few B-15Ns, a GK RB, a Bassman, a Wal, a few Rics, Ps and Js, and a dog. Possibly one or more ex-spouses. And a really pretty $25k coffee table bass.
 
I work as a house/estate manager in NYC I have seen lots of amazing instruments that don’t get played, from the guy who bought a Stineway so his daughter could play to amazing instruments in storage units that were bought because a child showed some interest in learning only to be abandoned a week later, I have also seen lots of wall st guys places with a stack of guitars that never get played, go and have a steak lunch and go to the music store. My point I think that super expensive instruments feed this market like expensive restaurants, cars, clothes etc women’s underwear seems to get more expensive the less fabric it has !!
 
My brother who plays with orchestras in Seattle and Portland drove from Oregon to Maryland to buy a Double Bass from a retiring symphony musician. He found an undervalued deal at $30,000 and it most likely will appreciate in value. I would never even consider spending that kind of money for an electric Bass unless it was a rare collectible that was sure to increase in value.
 
In my experience it's not necessarily about quality but about getting an instruments that is customized and built to your specs.

I recently talked to a luthier about building me a high-end P-bass clone. He actually suggested that if I wanted a traditional Precision-shaped body he could just buy the body from somewhere else to keep the price down. He said he couldn't build the body any better than that anyway. But if I wanted a DIFFERENT body shape... different price altogether.

My point is: A 25k bass isn't necessarily THAT much better than a cheap bass but you're paying for being part of the building process, getting something unique with the EXACT specs that you desire, exotic woods, finish, neck profile, etc, etc.

I've got an absolutely flawless Squier with bindings and block inlays that cost more or less the same new as you would pay for just bindings and block inlays as an add-on with a Fender Custom Shop instrument. Different labour costs is of course a part of the equation here but my point is: Mass manufactured blocks+bindings doesn't cost the same as customized blocks+bindings. And mass manufactured is getting pretty good and consistent these days.
 
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