Right, well BMWs, Mercedes, and Audis... particularly the 3/C/A4-type entry level models were like a dime a dozen when I was in Germany for a few months about 10 years ago.
Heck, even the commercial trucks and rigs were half Benzes... lol, and no they weren't luxury in the least.
But yeah the badging game is an interesting one. Then again with the close relationship between, say, the Camry and ES350, I actually don't mind paying a little extra for all the nice extra features and dealer experience the ES provides.
Similarly I know my A4 shares some components with some VW models (though it stopped sharing its chassis design with the Passat in 2002 and is now a unique platform for the most part) but at the same time Audi also owns Lamborghini, Bugatti, and Bentley and I actually saw a couple of parts inside the cabin of a Bentley Continental at my Audi dealer that were identical to my A4... so I suppose parts sharing can roll both ways when you're somewhere in the middle of a brand's model lineup.