I'd say it isn't necessarily being in or out of touch with reality, but as a percentage of your total disposable income. I'm sure there are people who would find it life changing, and people who would find it irrelevant. Just depends on where their economics are, generally.
35 years ago I walked back and forth to work for 3 months because I couldn't afford $84 to renew the registration on my car. An extra $5 a day then would have been most welcome.