Right on. While I said "I appreciate a good name", I'm truly a sucker for a good name. Branding is huge, even when it's a personal brand.
So yes, a one-time fee of $250-$1,000 feels ok to me, especially considering what Automattic paid for the TLD.
It's still possible to come up with vanity domains using common TLDs. You just need to have some wiggle room (: I replaced a single letter in the shortened version of my own name and got a .net for it just a few months ago.
I would really prefer using chris.blog instead of buying a .com domain like this-is-chriss-development-blog.com, just because any shorter .com domain is already taken.