I've only entered the hobby in the last few years, but I've asked people the same thing. They all said fragging is what spiraled things out of control. He tells me he remembers when euphyllia starter colonies went from $20 to $25 and thought no one is going to pay more, they've always been $20 for however many heads comes on it. "Back in the day" a frag was what we now consider a mini colony. No one really named corals either. They just grew until they became a problem, were broken up and given away. But now, omg is that an "ultra soooper house fire staff of gandolph" (that you happened to just name on your own). Oh you're charging $700 for a shave off one of the polyp holes, it must be awesome!" I've personally had some crazy awesome wild SPS colonies in the past. Tips would randomly get broken off and in the sand, and I wouldnt even think or care. Then I see people on FB groups selling "frags" that are just tiny little tips where there is more super glue on the plug than coral and they're charging stupid amounts for pieces that arent even worth picking out of the sand. My LFS sometimes gets caught up into it also. He just tried to get me to buy some japanese gobies or whatever, and I said I dont want them because I'm not a fan. "oh but they're rare!" .....Yeah i dont care. I like what looks good and isnt inflated because of the "ultra" tag.
I just buy what looks good at a good price for me now. I also dont try to build a "dream tank" of coral anymore. All these crazy sps tanks you see jam packed from sand to lights with colonies, every single one I've read up on afterwards has "crashed" and been wiped out.