Yeah Ive been playing for about 10 years now and still cant justify spending more than $500 for a guitar. I usually look for expensive guitars that are used so its the same price of a brand new cheaper guitar.

But like others have said, when youre learning you barely know what a TUNED guitar sounds like, let alone a really good one.

Those starter kits are alright, but I would take that same amount of loot and buy something used maybe a bit better. This way you got a chance of selling it for what you bought it for, if you decide to quit playing. Guitars and amps dont lose their value really that fast. If you get a good deal, then another guy will want that deal later if you quit.