So much of this is wrong; both your conclusions and alleged facts. I hope I understood your meaning. Additionally, I hope you're writing this on a phone because the spelling and grammar is indecipherable.
You seem either young or new to guitar. If the "bursting bubble" you're talking about is China making a lot of fakes, that bubble has been burst for a while.
PRS will continue to win at affordable price points as well as expensive ones. From what I've seen in these videos, PRS SE is a much higher quality guitar than even "private stock" Chinese fakes. Most cant even stay in tune. Not to mention the moral and legal implications of buying these guitars. It's illegal in some states, I believe. If they are using real rosewood, I doubt they are following CITES regulations (Although the board on at least one of those looked really suspicious).
edit: Additionally, it seems like most people who buy these fakes aren't particularly interested in quality. They're like the young boy you described, they just want to own something that looks the part so they can tell all of their friends about it. If those choads want to keep buying Chinese fakes, whatever. It will never be as good as the real thing.