Shops like this are rare in the hobbyist community, but not unheard of. I'd estimate that several dozen members of the other FOG have similar setups. Personally speaking, I could have purchased a lifetime of furniture and cabinetry for what my tools cost. But saving money isn't the point. As a full time engineer, working behind a computer 10 hours a day, one becomes a bit disconnected from the physical world. In my spare time, I like to pursue hobbies that are both intellectually stimulating and require a bit of hands on hard work. Woodworking is a great outlet for both, which increases my overall happiness and physical well being. It's hard to put a price on that.
I'll venture a guess that many owners of these high end shops have a similar rational.