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What I meant by 'step up' was basically what you said. You get a balanced motor, or (going back a bit) an OHV Suzuki motor, USD forks, better/different gearing, instrumentation. As you spend more, you get EPA/DOT to give better reassurance about street legal titles and registration and as you spend more yet, you get local 'real' dealers who offer 'real' warranties. With each new level comes more stuff and more expense. You pay the man and you take your chance. I'm all about cheap, and I've seldom see a clearly case of risk-vs-reward. Yet I have to say that at my age, just going all in on the absolute cheapest model and hoping for the best...that's a tough call.
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