This post expresses the matter well.
The marketing behind the product makes them extremely fashionable, but - for the same money or a bit more, there are far better products available which are both less 'trendy' and which - to audiophiles - deliver a far better sound.
Well though that is true, you don't really have much room to criticize.
Be fair to the average consumer, to whom headphones are a niche market; he/she doesn't KNOW which "other" headphones are just as good.
They do know two things:
1) Beats are at least something they can for sure count on to deliver the WOW factor they want in the headphone bass.
2) They will have the added bonus of not only not looking awkward or clunky, but rather be a fashion statement and secretly also a status symbol. Like: "I paid at least 100/300$ for these" same as any other brand name status. With lets say the Audio Technicas or others "clones" people don't know if they are 40$ or 200$, but they DO know you CANT buy Beats for less than 100$ or so.
So its not really that dumb, the consumer isn't being an idiot, its simply a difference of preference. Say what you really mean. You just don't like bass.
But the point is nobody knows who those "other" quality headphone clones are. With other makers making so many different varying degrees of confusing types, you need a sound engineering background just to understand it all.
Some are partially as good. Maybe some are identical. Maybe even better and cheaper. But again, people know exactly how much your beats cost and that is subconsciously worth value to people that justifies the price.
Are they really expected to try out all these various brands just to get an imitation to save some money?
There are many industries of convenience. The price tag is something that buys both status and time saved shopping for comparable quality because you can feel comfortable you bought the original that set the standard for that energetic bassy closed-can feel.
Branding has logistical value and there are many parallels to be found in many other industries where such a paradigm exists unchallenged.