You can approach this question from several perspectives, with the overriding one being Festool products themselves; and then the specifics of the Domino – I’ve owned the Domino for many years.
I’ve long held that when Festool competes with other brands (Bosch, Fein, even DeWalt), they are over-priced for a given functionality. They may use better motors, better bearings, or high-performance Brushless motors (Vacs, Drills, for example), and maybe the ergonomics are better – I don’t know; but I find within a competitive product, the other brands offer a better value.
When Festool makes a category-defining product – the Domino, Track Saw System, maybe the MFT/3 – their engineering and systems-approach warrants the higher price-tag: they have to recoup the tooling and engineering costs before every other manufacturer reverse engineers it, and sells it for a true market value. I don’t begrudge them high-profits on innovative products. If the tool-buying public doesn’t want to pay the price – then it’s not a value to them.
The Domino is a frequent go-to tool for me, and not just for its Mortise & Tenon capabilities. I often use it as a ‘locating device’ for domino-dowels (Rocking Chair arms & headrest, rather than screwing the joints); as a precision (depth) spacer (DVD Holder and Executive Desk), and within its designed function of M&T (the Outdoor Bench & Coffee Table both use Integral and Domino M&Ts, and a Teak Shower Bench). The Domino’s functionality trumps its cost, for me: I’m not a commercial shop – I consider the Domino a versatile, unique method of joining boards.
For me, I’ll buy Festool when their products change the game; otherwise, they’re overpriced.
Mike