I know a contractor who buys certain tools at Harbor Freight, teling me that they're cheap enough to replace when and if they wear out.
He is 63 years old, and I suspect that that has something to do with it.
In our field, in, for instance, heat presses, I see similarly sized machines ranging from $200 -$3000. I bet that the $200 machine, along with some transfer paper from OffMaxStapot will make some nice gift shirts and work for those Cub Scout and Brownie projects just fine.
Similarly, a cheap embroidery machine may well be fine for a hobby level home based decorator.
Putting a business, with deadlines and a reputation on the line may be a different situation entirely.