I started trying the cheaper ones a while back due to a bad run-in with a really expensive bottle. That thing was hidious (hmm, and I can't remember now what it was - many have been an old Penfold). Anyhow, after that started to wonder if the expensive ones could be crappy, why not have the cheap ones be good.
I live within SKUD missle range of Temicula, and have done the winery taste testing crawl a few times now. There are some good "cheap" local wines. Not as cheap as I would like, but nothing like the $200/bottle junk you mention.