I hate to be that guy, but have you ever actually
listened to a pair of Beats? It seems like most people are agressively derisive of them without having actually tried on a pair. Hell, even I used to be that guy.
I use a pair of Sennheisers as my go to headphones because I prefer the accuracy, but Beats are kind of great to listen to. They're inaccurate and hyped as all hell, but in a really pleasing way (so much bass) if you mostly listen to modern pop or dance music.
EDIT: And with respect to having a reputation of selling overpriced, inferior products on the basis of fashionability: isn't that what Android fans say about Apple and the iPhone? Seems to me the two companies have a lot in common. Both sell well designed products at high markups on the basis of fashion, and not necessarily on feature superiority. Plus, I wouldn't expect Apple to integrate the Beats brand into their own, as that'd destroy a lot of the value associated with the acquisition.