Interesting thread! Short answer, no, I don't think $175 is cheap as chips. I'd give the SA the benefit of the doubt, though. Customer service is a rough job and it can hard to hit the right note all the time. I think I'd be slightly flattered that she perceived me as someone for whom $175 is trifling.
I think the important thing to remember about hedonistic vs utilitarian consumers is that those of us on the utilitarian end of the spectrum do (or can) derive a lot of pleasure from those practical, highly-considered purchases. Impulse shopping, spending money I didn't plan on spending, or buying things that don't serve a clearly defined purpose, typically results in a lot of anxiety for me, which in turn can make it harder to enjoy the item I've bought. When something catches me eye unexpectedly, it's much better for me to sit with it for a few days/weeks/months before I make the decision to buy. The exception to this is thrift stores, where prices are low enough that I am more tolerant of the occasional mistake and the chances are high that the thing I'm looking at will be long gone the next time I come in.
My per-item thresholds have gone up quite a bit over the past few years largely due to inflation, but also because I've gotten stricter about quality, longevity, and ethical business practices. I used to be be under triple-digits for everything except winter outerwear/footwear, but these days, even summer footwear is likely to be close to or over $100. Pants and knitwear, too. I'm well-stocked enough that at this point, I can usually hold out until I find a secondhand option, but for true essentials I'll shop retail if need be. CPW is a significant consideration for me. I am more comfortable and more likely to spend $$$ on gear than on formalwear, because the gear will be in heavy rotation, while dressy outfits will only see a few wears per year. (Really, I just don't buy dressy clothes right now. Unless my life changes dramatically, my current dressy capsule has the depth and seasonal variety to last me through at least a couple of years' worth of weddings, holiday parties, and memorial services before it needs updating.)