I think that there is a balance between the image and the function in how it should be important to people. At a certain level people should just be concerned about finding products that work and work well. No-name medicine is the same as name brand so why go for the name brand?
On the other hand, image, personality and style aren't bad things necessarily. It helps people express their individuality. In some ways it is art. It is a fun thing to engage in.
So there has to be balance between the two.
Design these days is moving towards form as function. Items are being designed to function without a bunch of bells and whistles attached to it. I like that direction for design.
If you need product to project individuality, personality and style then you as a person do not have individuality, personality nor style.
IF you need individuality, personality and style to buy a product then you're not an individual, you're certainly not stylish and your personality is compatible with cardboard...
If your product cannot sell without individuality, style and personality as its wingman, you have a bad product, or at least one that does not function on a higher plane than equal products. IF it quacks like a duck, looks like a duck and walks like a duck then it is a duck, what is different is easily discerned as different if it is in fact different. If you need to tell me you're different for me to KNOW you're different, you're not different, I would know you were different if you were sufficiently different...
Let me sum it up succinctly, its the difference between "I fish, therefore I am a fisherman" and “I am a fisherman, therefore I fish.”
Where you've gone wrong is you've included/associated individuality, style and personality with branding. You've bought exactly what they're selling, a euphemized version of identity only available in 4 low low payments of $9.95.
As I said above branding is the differentiator, its the semiotic of difference between product X and Product Y. A short cut if you will. As a consumer you don't have to know the core differences between a Ford and a Lexus, you have the semiotics to tell you that one is X and the other is Y. The short cut enables you to know the difference between X and Y without actually knowing what the difference between X and Y is...
Again, highly recommend the System of Objects if you're interested in this motley mess...