To the point of this thread (as old as it is...), nowadays you can get a very playable guitar for a decent price. When I started playing (which seems like it was before Edison invented the lightbulb...), you only had the choice of either bad/cheap or good/expensive. There was not real in between.
Now? Much different. You can get a huge amount of very playable guitar for a very reasonable price.
To the point of my wrestling; I will always tend towards the more expensive 'real deal'...whatever that means. I think it is because I am more investment minded in addition to wanting a playable instrument.
...and to totally contradict myself, when I bought a bass a few years ago, I got an Ibanez new and on sales for $300 new and got a Fender T-Bucket acoustic too. I love playing them sooooo......I guess I'm a lier too....
:D