I paid $1100 for my Tag back in 1999. I bought it with all of my graduation money from High school. I've worn it everyday for over 10 years now. It's the most rugged watch...It was crushed underneith the wheels of a '67 912, and the sapphire crystal didnt even have a scratch on it.
If you look around, you can get a nice, quality pre-owned one for well under $500. (Like a 2000 Quartz). There's no comparison between a swiss army watch and a TAG...i've owned both.