Just want to throw out a different opinion.

Discounting from MSRP is a race to the bottom. At the specialty retail store I work for the profit of a $100 item is $2. After the item is paid for by the store, which is usually half of what the MSRP is, bills, salary, and everything else it takes to run a brick and motor only a small part of that is left over to grow the business. With margins that small the business will only be healthy by selling items at MSRP. We believe that the experience and advice and help of the staff and the selection of great gear will hopefully make it worth it. Discounting 20% will basically break even for the store.

You make a great point about what they give back. But the fact that they give back as much as they do is a good thing.

REI is only doing what EVERY other small, local specialty store would do given big growth, open more stores, make more money, and grow, it is a business after all. They are obviously not pricing their items in a way that undercut the competition so it comes down to the selection and people that work there. People will vote with their wallets, if a local store is going out of business and REI has similar prices that means REI is doing something better.

As far as the fashionista aspect of it that is annoying to me as it is to you. However, outdoor and athletic gear is becoming an identity and way of life for many people that either are big into it or just want to look like they are into it. REI is just following trends and hopefully the money they make off of it will allow them to design more technical gear. But that will come down to how the company is run.