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I think you can get inexpensive red wines that are drinkable. White wines tend to be pretty nasty in the sub $10 catagory.
There are some decent cheap wines, and not every expensive wine is good. But that doesn't mean that wine drinkers are fools. Some of the more expensive wines need to be put down for a few years to come into their own. We put down a bottle of 1998 Far Niente in 99. Openned it this year and it was fantastic. I don't think we were just having hopeful taste buds. It really was a step beyond anything you are going to taste fresh from the bottle.
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