Then you aren't the target market for the $200 skin, and that's fine. There's no way in hell that I'd ever touch one. However, if someone does want to show off that they are willing to dump $200 into a not-particularly-special skin, it doesn't hurt me any. I mean, I guess it's dev time and money spent on a skin I don't want. However, riot constantly releases skins that I'm not interested in for one reason or another, so I can't say I give a shit.
Skins team and Gameplay teams don't really mix headcounts! So personally (as someone on a team that doesn't bring in the bread), I'm thankful for Skins team trying to figure out how to get more bread and bacon with the team they have, so us gameplay teams never have to worry about money :D
In fact, the more that they do, the more likely we are to get more funding the years after so that we can do more things.