Earlier quoted context omitted.
Wow, uncanny resemblance to Giffen goods: https://en.wikipedia.org/wiki/Giffen_good
From the wikipedia article I gather that the only Giffen goods that were actually shown to exist are the Veblen goods and thus disqualify as Giffen goods. It seems to me that Giffen goods are a theoretical thing that has never been actually shown in real world (as the article states, all of the proposed examples were discarded). The case of website cost going down and demand going up seems pretty standard.
If a package of ribeye steak normally sells for $2.99 and doesn't sell well, but then its price changes to $6.99 (but nothing else changes), and demand increases, that steak is a giffen good. The ribeye steak is not conspicuous consumption (unless your definition of status is really loose and includes posting photos of your food to Instagram). What happened there is straightforward: there's an elastic demand for ribeye steak, people saw the price and assumed quality signaling. When it increased to price parity with higher end brands, people assumed quality parity as well.
Conversely, a mechanical watch is specifically optimized to be good at time keeping in the most functional and cost inefficient ways (e.g. assembled in hand in a white gold case with a hand-decorated guilloche dial and proprietary in-house movement mechanisms, etc). That is precisely conspicuous consumption, and thus it's a veblen good.
One good's demand increases because of quality signaling, the other good's demand increases due to status signaling. The point of there being two of these definitions is the nuance in why consumers would purchase luxury items. Theoretically, people don't buy at Trader Joe's just to brag to their upper class friends that they shop at Trader Joe's (this is not a good example but take away a specific brand and you get the gist).