I'm not sure why it would be so unfair not to reimburse people who want more expensive goods, though.

If it costs $1.00 to make the basic food, and $1.10 to make slightly better food, and someone is willing to pay the difference, shouldn't they get the slightly better food?

Maybe it's not a big deal that nobody will eat anything that costs between $1.00 and $2.00. That's not a lot of deadweight cost. It's only around a dollar a person. But this will apply to everything you're paying for, which we have established is significant. If it costs $300 a month for cheap housing, and you virtually eliminate any housing that costs less than $600 a month, that is a lot of deadweight cost.