The disconnect is that you are approaching this as someone who is A) spending his own money, and B) not a dummy.
Soaking the taxpayer for "just" a few hundred thousand for a nice steak dinner happens all the time. They're state employees. It's not their money, and it's not like they're going to get fired for it.
edit: EVIDENCE. used to be married to a professor on textbook committee. textbook selection time is always a month of upscale dining. for higher-rent example, look at the epstein/ito/lessig saga at MIT. befriend sales guys at any big company, and they can give you examples from morning to midnight. open your eyes. it is hidden in plain sight.