Well most people are just jumping on the pop culture band wagon and buy it because its expensive and flashy. And basically yes it is a status symbol, just like Gucci et all.

However LV, who was a real person, began making steamer trunks for stage coaches back in the 1700's (dont quote me on the date, it might be 1800's) Anyway he pioneered the square design because back then they all had domed lids. He also pioneered use of new materials. They were very high quality and took off with the upper crust set. Hence how it took off over the years and gained in popularity. Only later did they come up with the monogram pattern and the use of the coated canvas. (Yes that brown material you see everywhere...its not leather..its actually a coated canvas)

Its just been a classic company with prodcuts that, for the most part, really hold their value and status. They all come with life time guarantees so if anything breaks just send it back. Only recently after Marc Jacobs took the design helm did it really take off with the masses. Esp after the graffitti bags came out like 6 or so years ago.

So basically, in a nut shell, thats "whats it all about." Hope that helps some.