Can you get a good domain at a relatively small price? People tend to get deterred by the cheap domains, opting for the more expensive ones. Should this always be the case?
Only if you're a high roller. I saw an ad here just two days ago where one was for sale for about $175. Another one I saw earlier, adult themed, was listed at $15,000. All depends on what you want and how much you want to spend.
I agree that it all depends on your individual taste, but it's not always a necessity that the good domains must be expensive. If you just take your time and look around you'll probably be pleasantly surprised.