Everybody has different opinions. In mine, unless I was significantly upgrading from my current instrument, I would not spend the cash. But then, somebody with lots of cash might not think twice about it. :) To me, that's a lot of money for such an incremental improvement.

If you deduct a cheap amp from your budget, you're going to have $200 - $400 to spend on the actual guitar. I imagine most responses will suggest you should go for a used instrument to get a better deal for that kind of price range. You are not going to get much guitar new for that, I don't think.

In any event, something to consider is your happiness with your current instrument: Are you actually displeased with it, or do you just want something better? If it were me, and I was generally pleased, I would indulge my curiosity with an Electric, rather than an incremental upgrade to my Acoustic. But that's just me. :)