After our discussions in class, I have concluded that we perform this snobbery for multiple reasons. One reason we might do this is for financial reasons. Obviously, the sketch by Picasso would be worth a lot more money than the landscape painting by an unknown artist if we were to try and sell it. This is unfortunate, but it is the way our society works. People will pay for big names.
Another reason people might prefer the Picasso sketch is for that reason exactly: they prefer the big name. They want to own something made by such a famous artist, no matter how aesthetically pleasing it may be. They would probably pay big money to even have one of Picasso's socks, or some other random object that he owned.
http://www.ebay.com/itm/Autographed-Stihl-MS-660-Chainsaw-by-Sarah-Palin-/110981910198?pt=LH_DefaultDomain_0&hash=item19d7098eb6
^ For example, the link above leads to an ad on eBay, in which a chainsaw autographed by Sarah Palin is being sold for $570, which is clearly a ridiculous amount of money to pay for a signature on a chainsaw.