Amusing, yes, but I don't think you're exactly correct. Let me point out that colored belts do not equal rankings. I'm more interested in the implications of the ranking system in terms of kyu and dan than the colored belt system. I agree that anyone for whom the actual colored belt itself is a great priority is probably lacking a little in understanding. In my dojo in Tokyo, there were only colored belts (other than white and black) for the childrens' class because it would not be considered mature for adults to be worrying about colored belts.
And by the way, if you want to see materialistic people, I suggest you go check out Tokyo.