Electronic Entertainment Excess

So E3 has rolled around again, and the gaming world is, naturally, in a frenzy. E3 is great, full of new games and demos of games we've eagerly been awaiting for years. Thing about E3 is, it's a bit of a clusterfuck, full of showboating and needless spectacle. Yeah, to a certain degree the spectaclle does make E3- just remember a couple years ago when they tried to cut it down, that was no fun.
However, when what we're getting out of E3 is this crazy, cultesque Kinect event that really has almost nothing to do with anything relevant (especially since most of those Kinect games were shown at the Microsoft Press Conference), something is wrong.
Now, I love E3 and hearing about it, but how can a company justify spending money on this? Or Activision's party, rumored to cost over SIX MILLION dollars, featuring Lady Gaga or Eminem, depending on who you ask? How is that reasonable or really advisable? I guess there's nothing WRONG with it per se, but it always strikes me as extremely excessive when companies do things like this. Booth babes and press events in exotic an fun places have always been part of the gaming industry I guess, but I'm always left wondering why companies can't just let their products speak for themselves.
You guys agree, or do you think these events AREN'T excessive and are an integral part of the experience?