I think older workers are less likely to be fooled by "cool toys", but all geeks want a system that they can be productive on.
As a Python programmer, I care more about hard drive speed and a nice monitor, but if I had to compile C++ I would kill for a faster CPU, and more RAM.
Some things boost moral and make workers more productive, so the employer benefits twice.
What they found was that paying larger performance-related bonuses caused bad performance. I don't think the finding applies to base pay.
That said, you're probably right that working conditions will be more important past a certain salary level.