I'll expound a little.
"Status" symbol? I dunno, maybe. Really, who gives a fvck what patches you have.
Reminds me of something my old Skipper said in regards to a guy's ribbon rack. "You can basically read a guy's bio by checking his ribbons". Kind of the same thing with the patches. No, we can't have "Winnebagos" anymore, but you can see another aviator, tell what community he's from, where, platform specifics, maybe even deplyoments made.
The patch thing is a tradition that needs to stick around in Naval Avation. Why not have your "minimum flair"?
As far as the cost...there's no comparison as far as the quality and look of the leather-on-leather vs using embroidered. By the time you hit the Fleet and get them, it isn't like you don't have a little mad money to spend on something you'll have the rest of your life.