High end components are never an overkill regardless of any kind of bike, be it road bikes, mountain bikes or folding bikes. You buy what you can afford. The higher end not only gives better performance but also they remain in-tune longer before they actually needs any servicing. Any LBS will tell you , they dread servicing those China made bikes. Why? Because they don't last at the peak performance for long and many don't even reach their peak tuning setting at all. In a ride, even the minutest of component like the shifter cable can spoil your mood riding. Ever tried adjusting and tuning till the best and then after 2 or 3 kilometers riding , the shifting becomes out of tune? The chain will jump at the RD rollers and you have this clackity...clackity .....clack at the rear end. Then the next thing is you start adjusting the barrel adjuster at the shifter and suddenly too much and it won't go to the highest gear. The other riders are all in front and you can't stop.
Don't take my word for it. If you have other friends riding good components, take it for a spin and compare. Only then you can compare. But nowadays, Shimano's technology has trickled down as they always have done so for so long. The Tiagras are the Shimano 105s of 2 years ago. It's a good 10 speeder as I have use 105s before. Many also have the notion that the cost of modding must not surpass the cost of the bike, if it is, better to buy a better bike. I tend to disagree with that. Why?
In the course of riding, say, a year or 2 or even 3 years, you get used to the frame, the handlebar and also the saddle. Change that and your usual ride will change for better or worse. Usually you need to re-adjust your cycling positions. So, apart from any other improvements, we come to components. The better it is, the smoother the ride will be. Yes, many says we just need to sweat it co a heavier and harder to pedal is no problem. I can accept that. But this confines to only the usual exercising rider. An hour a day and maybe a 20 kilometers ride at weekends. OK, I can accept that. Even so, the bikes will start making noises in a few rides. I am amazed at many riders don't seem to notice their bike's conditions. I have seen many with dry chains, creaking here and there, rubbing here and there and it seems that I am the only one noticing.
But higher end components also means reliability ! If I go for a major ride, like I did a month ago. A 2 days ride from Taiping to Trong and then to Parit Buntar, I rather have a bike where I can rely on. To ride 120 kilometers in 2 days, I can't gamble on the bike malfunction. In this ride, I found out I am too old for mini velos

Need to go back to folding bikes, more upright riding position. So, it's a matter of how and where you ride. What kind of riding do you do, that's an important question. Also, another question is, will you progress to hardier and longer riding in future? Is it worthwhile to invest a 2K groupset on a 1K bike. You must understand, the frame and saddle is a stationary part of the bike. If it is right, it's right. Meanwhile the moving parts are the groupset. It grinds and grinds and it takes hard impacts most of the times.
Let's talk about the quality of the groupsets. Why a Dura ace is more expensive than Ultegra and why Ultegra is more expensive than 105s? 105s like the Shimano SLX on the mountain bike counterpart is the workhorse of the groupsets. It's hardy and strong. It gives fairly good performance and reliable. But some want better and that's when Ultegra comes in. Basically the design is the same, even performance. But why? They made it more precision and better metals and springs and shifters uses bearings rather than bushings for smoother shiftings. And finally comes Dura ace, which is actually made for race! It is not as strong as the Ultegras or 105s but it is made lighter. Titanium and carbon fibres are used to lighten the components. So, it is actually not suitable for daily users.