I could be totally wrong, but I think you see more Chanel bags in rich suburbs/ritzy small towns like Palo Alto, Orange County, or outside Dallas. Places where people have lots of money but are more concerned with typical signifiers of luxury than actual fashion. You would never see someone walking down the street in San Francisco wearing rock studs, for instance; that person would be instantly pegged as a tourist. I've rarely seen someone carrying a Chanel bag in my city, or other big cities I've visited (or I could just be running with a different crowd, which I'm very okay with!); unless you are a very rich, mature lady, it looks gauche and out of place.