Frugality, if practiced correctly, only enhances your ability to go farther and accomplish more.
You're confusing frugal with "cheap". Price is a primary concern when you're cheap and you feel like money is a limited resource. If you're debating a purchase from a frugal perspective, you're asking yourself how much value does will this thing add to your life. If a great amount, price should mostly be irrelevant (although not completely irrelevant since we live in the real world).
Yes, I admit that there's a fine line. But it's all about how you see the world. Do you see an abundance of resources that should be managed effectively and efficiently or a limited amount or resources that should be used as sparingly as possible?
I do definitely believe that being "cheap" holds people back. If you're only ever focused on "expenses", where's that going to get you? If you only ever think in terms of "I have this much money to work with" then you'll probably never get ahead. Of course I'm not saying that in reality people do not have limits, it's just you'll never expand if you don't allow your mind to. You need to be able to think like a rich person but live like a below average person. You have to balance the present you with the future you and slowly grow into that person.Someone who is wealthy would not care about the price of things that make them happy and bring value to their lives. But since maybe 0.5% of people here are worth $10m, you still have to make prudent choices with money.
Refusing to only buy the lowest priced electronics/clothes/household items, bike everywhere you go, line dry all your clothes, do everything in your house yourself, make all your own meals, etc? That's cheap in my opinion if you haven't considered or tried alternatives that will free up space/energy inside your mind to do things more in line with what makes you happy. I know this is sort of the anti-thesis of what MMM preaches but it's true if you're ONLY doing aforementioned things to save money. It should never be to only save money - it should be that not only do you save money but you gain energy and enjoy what you're doing at the same time.