"Frugal but not cheap"? I guess I fall into that category. I've got the money to spend on a big pile of gear, but I choose not to. I can't put my finger on why....I guess maybe I'm just a minimalist at heart. Or, more likely, It's got to do with the way I started in photography. Back in 1974, at age 14, I saved up my paper route money (and Mom and Dad kicked in a healthy amount) and I bought a brand new Minolta SRT101 with a 50/1.4 lens. Over the next 5 or 6 years cars and girls took up all my money so acquiring more lenses never happened. When I finally did get a wide angle and a telephoto they mostly sat on a shelf and gathered dust. Having different focal lengths available to me just didn't live up to the hype, at least for me. I was able to, and am still able to, make 95% of the pictures I want to make with just a "normal" lens.
My current film camera is a Fuji GW690III I bought about 10 years ago. It's a medium format rangefinder with, yes, a fixed lens, slightly wider than "normal". I've made lot's of great photos with it and never once wished it had a different lens on it.
I've had access to wide angles and telephotos and zooms over the years, even bought one or two of each. The only thing they've taught me is they don't have any effect on how good my photographs are. Sure, if I was a pro I'd need them, but as an advanced amateur I feel my work is just as good with a single focal length, and the size/weight/portability factor is enormous.
As far as digital cameras being "obsolete in 6 months", well that's all in your head. I just retired a Nikon D100 that I bought in 2003. Seven years of good service. 95% of that time it had a Sigma 20/1.8 welded to it. A little wider than my ideal, but it served me well. Lot's of great photo's, lot's of enjoyment. If I didn't make large prints, and only showed photos on a monitor, it would still be plenty good enough and I wouldn't have replaced it. But I do make large prints, so I've recently replaced that rig with a new one - a K7 with a DA35Ltd lens. This is truly a compact and versatile setup that I can see living with for a very long time. Not the cheapest body and lens, but pretty darn frugal I think considering it's ability do everything from macro to portrait to landscape, all with first class image quality. As far as todays DSLR's go, this combo hit's the sweet spot for me - I have no desire for more lenses right now, and that's frugal indeed. I guess I'll spend the rest of my money on cars and girls.... (don't tell my wife
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This is kind of a long post, but I'll mention one more thing. I think spending money on a REALLY GOOD image editor is a frugal thing to do. Photoshop, for example, is the price of one really good lens, but if you're willing to take the time to learn it it will do 100 times more for your photography than a single lens ever could. That fit's the definition of "Frugal, but not cheap" perfectly.