Prices on 70's Fenders have gone up because the prices on 60's and 50's gear is way waaaaay beyond the ability of a normal person to afford one.
And Fender Custom Shop and their higher end series are "way beyond" the ability for a "normal person" wanting a Fender to afford too......so why haven't Squiers gone up in price to keep pace? Maybe because Squiers can be pumped out continuously, cheaply and effortlessly by the Chinese guitar mills.
And they'll never be a shortage of them.....ever. There is and will always be an endless supply.
And does anyone really believe that an early 60's Fender is 5 times better than a 70's? - If you believe that, then you're actually helping promote those ridiculous prices they command.
The complaint is about poor quality at high prices.
Quality is a paramount issue in buying a new guitar. It's less of an issue for people who are buying a vintage or collectible instrument. There are other factors involved, none of which are related to a buyer being uninformed or unsophisticated.
And there are many musicians who've 'made it' and been quite successful playing 70's Fenders and continue to do so today. Have they been modded? Most likely! So they've become worthy investments for those who own them. Worth putting even more money into them than the price they paid.
Fender is reissuing 70's models for several reasons. The first is that there is money to be made capitalizing on a nostalgia market.
Yes, and there are small time guitar shop owners and individual collectors trying to make money "capitalizing" on the nostalgia market too,....with the real thing!
Feeling nostalgic for a fake reproduction? Almost as ridiculous as the fake 'road worn' guitars the 'modern' Fender Inc has dreamed up. Aren't they also romanticizing actual vintage guitars with those? Fender of the 50's-70's didn't need to resort to over-the-top 'gimmicks', endless signature/limited editions, black top, pawn shop, standard/special/deluxe, beginner packages, custom this or that, etc ...wall-to-wall hype to sell guitars. That's part of the appeal of that early Fender era. Those sold themselves.
And I don't remember people back then dissatisfied with their Fenders. They would've returned the guitars or never bought them in the first place had they been so terrible. The extreme across-the-board negative judgements largely came after a lot of intense scrutiny by guitar snobs and cork sniffers. And don't expect to find the best of that era floating around on Ebay or in a pawn/guitar shop (if they're what you've based your opinion on). The good ones are in the possession of those who know they have something worth keeping.
Buyers and sellers of vintage instruments are not mega-corporations. They cater to a specific market and have no million dollar ad campaigns. Why keep raining on their parade and those who see more value in those instruments than you do?
Can this [Invalid or Expired Link Removed] do what a cheap computer and printer can do today?

Never,.....so why is it more expensive?
And is your car more 'advanced' than
this one? Yes, probably by a lot. But that doesn't matter a bit to the guy in the video.