Scarcity, Marginalism, Ersatz Utility

To some proponents of the Use Theory of Value, the high price of useless--relative to inexpensive water--diamonds, is a "paradox" explainable by Marginal Utility.  To others, the example suffices as a refutation of that theory, in favor of what might be called the 'Scarcity Theory of Value'.  Now, since the latter is based on the peculiar desirability of Scarcity per se, the Utility that it breeds can be more accurately characterized as 'Ersatz', rather than 'Marginal', symptomatic, thus, of psychological confusion requiring either education or therapy, rather than of a defective theory to be tweaked by an ad hoc manoeuvre.  Thus, Marginalism reinforces one of the weaknesses of Capitalism--an indifference to the traditional moral distinctions between apparent and real worth, which even the Utilitarian Mill recognizes, i. e. in his 'higher'-'lower' distinction, and, between Wealth and Well-Being.