Sure, that's the story in everyone's head. Maybe that's not conspicuous consumption. More like "conspicuous authenticity"?
Everyone loves the story of "Well, he just got a beat up synth from his uncle's basement and was so inspired/gifted/dedicated/whatever that he then made this awesome music in spite of not having the latest gadgetry."
But, because we all love it, we fetishize it. And then people come along and productize and monetize it. And now you've got 303s selling for several grand on eBay.
Meanwhile, if you stray off script in a way that's cheap but not in a way that fits the hipster authentic narrative, it doesn't quite work. Putting together tunes using a beat up analog sampler and a crate — it always has to be a milk crate of course, too cheap to afford real shelving! — of records is hip. Putting together tunes using, I don't know, FruityLoops, your mom's old ThinkPad, and a bunch of old MP3s doesn't have the same cachet.