Did medieval people think of wine as a sophisticated or luxury drink? If not, how did it get that image by modern times?

Wine’s luxury status then and now really depends on how prevalent wine-making is in a given region and thus how expensive wine is. In areas where wine grapes grow easily, it’s not considered a sophisticated or luxury drink per se, except at the top of the market. In areas in which they don’t, or where beer or other drinks predominate, wine is considered more of a rarity.