Imagine going to a Ch3ss tournament and playing someone who has 4 queens because he could afford it. That is just insane, but that is how Magic is.
I don't think Ch3ss analogies work at all when it comes to explaining the collectibility aspects of magic. Even a sports analogy works better.
If you have a sporting hobby, you'll start off playing that sport with a small investment in equipment - clothes, shoes, perhaps renting or borrowing the cue/racquet/clubs/bike/whatever. As you get more interested and better at that sport, you'll likely invest more money into better equipment. And you'd invest money into going to better training facilities, travelling further to participate, and so on. If you want to be competitive at a higher level, you'll naturally want the most appropriate and often the best equipment, since it will give you that slight edge in what you're doing. Same goes for better training areas, better competition and so on. The more expensive equipment might not make much difference to a beginner or a casual hobbyist, so they'd not likely invest in it, in the same way that they'd likely not travel as far or be interested in competing on a level outside of their own group of friends. However, the true competitor will recognise that they require that extra something.
This goes also for computer gaming. If you're good at a competitive RTS or FPS game, you're probably going to be spending money on top of the line hardware to get the most reactive gaming experience. You'll play online more and maybe even travel to enter competitions at LAN gatherings.
In the same way, if you want to be competitive in Type 2 magic, you have to go and acquire those multiple sets of $10-$15 current rares. Those are the pieces of equipment necessary to compete properly at the highest levels.
In the end it's all about how dedicated you are about being competitive.
I totally agree that the proxy tournaments are increasing the popularity of Type 1 which is, in turn, driving up the prices on the older cards. The reason why the older cards are still rising in value is probably due to multiple reasons - the popularity of players wanting to own the real cards, the fact that some higher profile tournaments like GenCon require them, the fact that there are still plenty of sanctioned tournaments, and the fact that they are still a good investment.
In almost no other hobby can you buy equipment that will actually increase in value over time (and this includes the other magic formats). If anything, at least one is not throwing their money away. In fact, in a lot of cases, someone could pick up Type 1 today and in a year's time, make a lot of money back from selling the cards if they quit.
I know that was slightly off-topic. Sorry.