I took my one and only KoM on a £1000 Tiagra equipped, alloy framed bike, that actually cost me 600 sheets.
Everyone up to number 12 behind me is a competitive cyclist, or a coach/trainer, and all set theirs on their high spec plastic bikes, all doubtless costing much more, allmof which put my Felt to shame on paper and cost. Nuff said.
I think the goalposts will be in a different position for every rider. Im a heavy lump, with the aerodynamics of a Volvo estate in reverse, and all the etap and Ti in the world won't change that, so once im on a bike that reaches a certain level of competence then my attributes likely counter the benefits that more expensive bikes bring. Thats my theory, and the fact that im no quicker on my more expensive (at retail prices), higher specced carbon Boredom reinforces my thoughts in that vein.
Conversely, a small, lighter rider may benefit more.
And then there's the trickle-down aspect. The Tiagra on my Felt is visually, and in operation, almost identical to the earlier generation 105 on my Pinnacle, which is 4 years older. That 105 is certainly no better, flasher, lighter or faster when removed in time by only a couple of years - in fact, for all intents and purposes it is the same.
Therefore, its not even possible to say firmly that one spec level is the "sweet spot", as the next spec down is liable to be every bit as good as the comparator once the next update rolls around.