Nice sheets do make a difference, but there's a point of diminishing returns at 400, and a point of false advertising at 500 or so. Cotton is cotton, percale cotton is a little smoother, "bamboo viscose" is effectively polyester made out of bamboo, satin is a commitment and flannel ceases to make sense at first thaw. My wife loves jersey sheets. They're basically a t-shirt for your bed. You should be able to get anything for less than $100 for a queen set. The more heavily colored the sheets, the less they breathe (in my experience).
I was looking for some good percale sets. My problem is that 200$ seems a lot for some sheets. But then again, the crappy static-y Wal Mart set is like 50$. I never realized how much things cost back when I was living with my parents. My first shock was trying to find a pepper grinder not made of plastic back when I moved out. It was either 1$ at the dollar store or 35$ at the fancy store. It's hard to find a good middle ground sometimes. I think i'll just pay up. I'm a sucker for nice things... Might as well enjoy it while I have the money.
Just to be on the safe side, I over spend on anything that connects me to the Earth: shoes, tires, mattress,/sheets, desk chair, camping pad, etc.
$200 is too much for sheets. Looks like bedbathandbeyond.ca has any number of queen sets in the 300tc range for $80. On a related note I was going to suggest a William Bounds commercial pepper mill but Amazon.ca has them for like $180 which is dope-smoking prices. And apparently they don't make mine anymore because they are savages.