From reading about these redesigns in the past it sounds like most of that money goes to surveying and considering all of the places a logo is used; letterheads

From reading about these redesigns in the past it sounds like most of that money goes to surveying and considering all of the places a logo is used; letterheads, physically on the cars, web graphics, sides of buildings, making sure it doesn't conflict in other markets, etc. Sure, Nike paid $35 to the designer of their logo, but that didn't include any of those things above or pay for all of the rejected designs. Like you're saying, the client very well might be requesting and choose a design that looks like it was made by an amateur.