in isolation is a positive word meaning _luxurious_. But if we say **** , it of course turns into a directly negative remark (" _overly_ luxurious" or " _too_ luxurious").
On the other hand, is an ambivalent word that has both positive and negative connotations. When it's negative, it's closer to _extravagant_ or _lavish_. People often say , , etc. When it's positive, it's almost interchangeable with .
So the speaker rephrased a clearly negative remark ( **** ) to an ambiguous phrase () to make the sentence sound more euphemistic and milder. But if we remove , is the word that is closer to _extravagant_.