Rich,
The cars are relevant as technology showcases and more importantly as toys for a sector of the car buying public who want this sort of thing.
Even more importantly, they are very profitable, much more so than the small crossover runabout: I'd guess that the margin on the AMG at £200k is fat better than on 6 x £30k family SUVs.
Cars have bloated, mostly because to meet all the safety requirements they have to be bigger than my old Ford 107E. At the same time they have become so powerful that they are only "safe" with layers of computer support.
Part of me does question the need for high powered cars with a sub 4 second 0-60, but it hasn't stopped me buying them.