Humans are rational animals. Yes, obviously we have natural inclinations (they aren't irrational, btw; they have a purpose and only when the inclination is disordered, deficient, excessive, or we behave in ways opposed to the good when moved by the inclination can we speak of irrationality). However, we can make errors in judgement when interpreting signs and relating these signs to our inclinations. Marketing is often actively engaged in confusing people when it comes to what things mean. And when we get the meanings of signs wrong, we relate things erroneously to our natural inclinations. So this very recent practice of buying extravagant diamond rings beyond our means is the product of psychological manipulation and deceit that exploits vice and inclination by effectively lying about what an overpriced diamond ring signals.
It would be an error to assume that a woman from a culture that values thrift would react positively to such a gift, much less demand it. She might be left thinking that the man is financially irresponsible. Most cultures do not make spending obscene amounts of money on a ring a common practice. The engagement ring has historically been a symbolic gesture, not a demonstration of irresponsibility, immodesty, profligacy, and vanity.
In the case of peacocks, they ARE their plumage. Their plumage is not a sign of seriousness, but a sign of fitness and health and shaped by inherent traits and female selection (her interpretation or recognition that the better the plumage, the better the health), not male initiative. The peacock also isn't willing his plumage.
You can just as easily construe the ring as a test of your potential wife's character. If she refuses to marry you because you haven't spent a fourth or more of your salary on a ring, then good riddance. Who wants to be saddled with a fraudulent, vain, and vapid creature like that. She would make a terrible mother.
These days people get married with somebody they met on Tinder for a month because "true love". The weight of a promise from a person you met for a couple weeks and from a family you've known for decades is different, which accounts for the modern inventions you despise as compensation.
I mean, I'm not saying this expensive ring thing is a desirable game to play, and I don't disagree that there are vain people out there, but the ring serves a particular purpose in the mating game of modern society, not just to satisfy some people's vanity.
(btw, if you think about it, an engagement ring isn't inherently that great for showing off. Most people put it away in a little box and wear a less conspicuous ring anyway.)
And thus, when somebody "irrationally" buys a "worthless" ring for a hefty amount, it signals to some extent that one is serious, committed and financially capable of the proposed marriage.
It's often not that the partner wants the expensive thing, but more that they want a proof that the marriage is worth more than that expensive and useless thing, which they want precisely because it's useless objectively and the purchase is "irrational".
It's basically a trolley problem of "do I value my partner more, or my hard earned $XXXX more?" The forced irrational choice makes the game rational on a meta level. I don't disagree that the game kind of sucks, and there are other ways to build trust and understanding regarding the level of commitment between partners, but I consider the ring thing to be the "easy" way to do it. (which is why it's de-facto standard in many cultures)
I think the hatred against capitalism and marketing is slightly off the mark here, since capitalism is merely supplying these expensive things to satisfy the somewhat "biological" demand in our mating rituals. Capitalists might be unscrupulous, but somebody had to do it.
(Disclaimer in case it matters - I'm male, happily married to my wife, and bought a non-diamond ring as an engagement ring. I don't think this necessarily applies to any gender in any specific case, but generally speaking so far as humans are animals, the biological aspect dominates)