I think the disconnect here is your use of the term frugal. In the US (at least the south) every time I've ever heard anyone say they were frugal they meant they were cheap. They would buy the cheapest possible thing and use it well past the point it was presentable. I've even heard such people claim the cheaper thing must be better quality because it's cheaper. Sadly, I'm not even exaggerating.
I'm from the NE, and the word "frugal" does not mean the same thing here as it does in the South. As someone above said about New England, frugal is an art form here. Frugal is spending more on Calphalon cookware because you don't waste a ton of money eating out 3x a week, and want cooking gear that lasts a lifetime so you don't have to spend more money re-buying cheap stuff later.
I can concur, being from New England myself frugal is looked at as a desirable trait. In fact, I'd say its synonymous with the term "thrifty" which is another positive association for us.
Sure, I've heard people use it this way down South, it's part of the politeness culture there, where using "cheap" would be perceived as insulting or pejorative.
It's an intentional rhetorical device. For the opposite take on frugality, you can read In Cheap We Trust: The Story of a Misunderstood American Virtue.
