Don't let anyone snow you. LuckyFour mad a good point about certain people maybe needing an office large enough so they can hold ad-hoc meetings without having to reserve a conference room, but the rest of it is simply ego gratification.
If you have a suite of offices that are basically identical except for a couple that have more expensive furniture, special carpet, wallpaper instead of paint, etc., then you are looking at arrogance and nothing more. The extra money spent could have been better used elsewhere in the company. These are people who are shouting "Hey, look at me - I'm important and you're not!"
There's no business purpose being served. These idiots, by being at the top of the heap alreadyhave all the important perks: higher pay, bigger bonuses, more vacation, more flexible schedules, etc. They don't need more expensive office furniture.
This kind if thing is a side effect of America's obsession with creating an aristocracy of the rich and famous. These people then develop over-inflated opinions of their own self-importance. Within companies you see 'executive' office suites, 'executive' lounges and sometimes even 'executive' washrooms that the peons are not allowed to enter. Out in the world you have 'executive' housing developments. These people have decided that they're somehow special and better than the rest of us.
Spending more on ertain offices adds nothing to the business - it's simply building monuments to ego.