I have one nice reel, and that is a Lew's Tournament MG Speed Spool. Maybe not nice in your book, but I love it. Both of my rods, a Berkley Lightning spinning and an Abu Vengeance casting, are cheap. My spinning reel was gotten for free, and is quite cheap. I'm hoping to replace it in the next year or so, but it works.
My old spinning combo that gave up on me was a very old Shimano combo. That rod, despite it's chunky guides and reel handle, is far lighter than both my other rods, and the reel is a tank. Although they broke from the considerable abuse my combos get on the bank, and from age, they were a dream to fish. The only quality combo I've owned.
Bottom line: Cheap equipment works, but high-end equipment works far better and lasts longer. The next time I purchase some equipment, I'll get something nice and consider it an investment.