Here's a good comparison: I get asked about fishing rods and reels by weekend and casual anglers. What's good, what do they need, they read in WhopperMaster Tour magazine that this $400-plus combo was the lightest, bestest, most sensitive rod and reel to detect a bass breathing on the worm and set the hook.
My response usually is to ask how often they fish. If it's a few times to PawPaw's farm pond then they could get by with an inexpensive combo. If they fish pretty regularly but not in tournaments and are solid with skills-knowledge, then jack it up to a little better combo maybe in the $200 or so range ... Duckett rod, Quantum rod, Lew's reel, Revo reel, whatever.
The difference is the guy who fishes religiously, in tournaments, is a guide or has aspirations to guide or tourney fish. The lower-priced rods will get you going but at some point, you'll probably want the lighter graphite and faster-smoother reel. And they all cost more because they're better. They are. A top-end G.Loomis rod is comparable to the Demarini bat and a guy who is really advanced in his skills knows the difference in that rod (or bat) and something that costs less and has more inferior components.
Same with golf clubs. You can learn to hit a golf ball with 30-year-old clubs. But if you're good -- really good -- then at some point you'll want to be measured, fitted and get the clubs for your swing speed and skills, both of which change with your age and ability.
Does a 12- or 13-year-old need a $350 bat? Probably not. Is he really, truly athletically gifted and looks like he may have a shot at a travel team or high school team (or beyond)? If so, then investing in better gear may pay off.