It's not crazy -- having the latest and greatest feels good, and $500 or whatever it costs is not much money for a once-a-year pleasure outlay. Consider what a car costs, and consider that some people buy a new one every 5 years. Now that's crazy.
Our only TV is a 32" CRT that I got for $500 in early 2001 as a college sophomore. I felt guilty about that for a few years afterwards, but at this point I can safely say it was a good purchase.
