I have a Levin handbuilt guitar, and it didn't cost me more than $400.
I've tried numerous >$1000, but my Levin is the best
one I've played so far. I do agree cost reflects quality
to a certain degree, but if you're just starting out,
there is no need for such extravagant purchases.
I think a decent Yamaha or Alhambra would make excellent beginner guitars,
so I think you should get something like that.
A really expensive guitar is like an extreme sportscar;
It's the best you can get, but if you've just started driving,
you would be better off with a cheaper car thats easier to drive.
Ok so maybe that was a really bad analogy but I hope you get my point.
I've seen alot of people not daring to buy beginners guitars,
so instead they buy the new Stratolux 4000 with 34 strings,
which although you might "grow into" after a while, it
can be a bit much if you've never played before.
Oh well, I shalt not make this post too long, although
I'm afraid it already is, so I'll just say good luck
with your future guitarplaying!