Ha! Yes that is a few steps too far. One time when I was really poor I bought a chef's knife at Dollar Tree. I took it home and sharpened it, and it was dull before I even finished prepping a single meal. I'll never do that again!

For hand tools it's definitely going to depend on what you need and what your expectations are. I have hand tools I inherited from my Grandfather that are over 100 years old that I still use, so that's my expectation for my tools too. You might achieve that with mediocre tools if you rarely use them, but I use my tools all the time. I service all my own vehicles, work around the house, and have side projects that I do. I've stripped mediocre screwdrivers and wrenches before, and that causes enormous problems that are more expensive than the price of a good screwdriver. I'd like my tools to go to my son when I die and still have life left in them, despite me using them for a lifetime. When you can get that from your purchase you really are getting a great value, even when it costs more up front. Plus there's the issue of comfort and ease of use too. Good tools usually have better handles, better teeth, better release mechanisms, whatever. They're just more pleasant to use.