I get you, I would scratch my head all the time too. Different folks, different strokes. I go back to the plato del dia discussion, we had some tight months living there but from the outside you would never have known. We were able to cover lost ground quick by staying home, eating basic food etc.
But see, I would argue that this was frugality exercised and managed with extreme care. I consider myself a frugal person and hate to waste money for things that doesn't add something positive to my life. It pays off to be mindful of expenses and expenditures.
Cheap I can't be. I do treat myself accordingly.