I got my pup for $350. He's beautiful, healthy, and was raised underfoot in a loving home. I think $1000+ dollars for a dog is a little ridiculous unless you're looking for show quality.
I think this is a really big over-generalization. Most people paying a lower price for a pup simply can't afford an expensive one. I don't know a single person who could comfortably afford to buy a $1500 purebred puppy
and pay for all the stuff you need to buy when you get a new dog (shots, kennel, food, etc...)
I'm a single person straight out of college. I could
never afford to throw down 2K on a yorkie, or anything else for that matter.