Higher end bikes don't have any "features" that yours doesn't have. But you could also spend half as much as you did and still get the same features. Higher price points get you lightness and stiffness. This translates into speed or less effort, depending on your preference. You also get higher quality components that will last a long time or you can swap out and sell if you wish. Low end bikes tend to be disposed of as a unit as they are not worth taking apart.
I feel like it’s just like people buying expensive sports cars, purely because they can, not because they actually need any of it.
High end derailers shift easier, chains have lower friction (especially in high/low gears), spokes and rims are more aerodynamic and stiffer, ratchets have smaller engagement angles, brakes require less force and don't overheat, tyres have lower rolling resistance and better grip, seat posts have compliance to remove chatter etc., And this is before you get into eg. MTB specific features like chain clutches and suspension tuning, or for triathlon aero bars, for city bikes pannier clips and built in lights, etc
Nothing. Bike manufacturers and smaller builders are not trying to sell these bikes to you or to people like you. How hard is it to enjoy your "normal bike" and move on?
Some people ride their bicycles for thousands to tens of thousands of miles per year. They're going to buy what they want so that when they do ride, they enjoy it.
Cheap wheels go out of true easily and before long are often too bent to be able to true by spoke adjustments. Cheap tires wear out fast and puncture easily. Cheap brakes wear out and go out of adjustment fast. Ditto cheap shift gear. I've broken pedals too, and I don't pedal all that aggressively. Really cheap stuff tends to be excessively heavy too, which can be a drag on uphills and when you need to carry it.
Yours looks like a perfectly fine commuter bike to me. I'm not familiar with the wheel or shift gear classes, but if it gets you where you need to go without wearing stuff out too fast, by all means no need to spend more.
For reference, I’m currently using https://www.boc24.de/p/bocas-bari-trapez/217333/ (which I bought at 320€ on sale) with some changes (B&M 100 lux front light, seat post with suspension), and I don’t think I’d get any major improvements with other changes.
Due to cycling in city traffic, I need to be able to instantly switch gears at standstill, so a derailleur would be a downgrade compared to the hub gearing I’ve got, and upgraded hub dynamos would bring me just 2-5% more performance, which isn’t really useful.