The thriving Asian replica knock off market for high end goods would counter this argument though, I would think? I think the important distinction here is that people without the means to afford a real Apple device would be satisfied with a 'nearly Apple' facsimile.

It only further demonstrates it. Knock offs are a way for people to signal more wealth than they actually have -- they'd rather have something that looked like the real thing than something cheap which doesn't try to be anything it's not.

Cubic zirconium had not made the diamond market go away, for example. Probably, if anything, it's made it bigger by giving diamonds a bigger cultural cache.