That's a great example.
1) The resale will be higher (albeit not correspondingly)
2) The upgrades that come with the Escalade will serve a purpose (i.e. nicer sound, nicer leather, etc. etc.) is a big deal for a taxicab mom
3) If the upgrades were for spinning rims, LED's in the grill/running boards or something weird like a boom box in the rear, I'd feel very wasteful.