This is how I have it with my guitar. It's a simple Ibanez Gio from a starter kit, probably coming in at 150 Euros - 200 Euros or so, with another 40 Euros spent on a guitar tech to set it up properly.
I'll replace it once I know how it is holding me back. At least that's the plan I've had for the last 4-5 years. But it has low action, fairly low-noise pickups, holds tuning. So no need so far.
Cheap electric guitars are much better now since the parts are CNC'd, even if they don't come properly setup from the factory. As long as the fretwork is good, you can easily upgrade everything else if you have problems with it.
Yes, and from what I've been reading and hearing: Modern electronic components and the manufacturing methods in general are also much more consistent in this day and age.
Back in the day, costs of a guitar would go into higher quality parts, and possibly even labor to ensure consistency and function exactly how it should. Nowadays, components are more consistent and cheaper than the better components of the 80s and 90s.
Thus the pure functional spread between cost ranges has been reduced.
Yep, it’s the golden age of guitar quality. These days even a starter guitar is pretty darn good. Ditto for amp emulators and small tube amps, wish that was all around as a teen.
I just look around in the most expensive street in my city for posts online or offline of people selling rackets that have maybe 2 hours of use on them. Then you can usually get 150$+ rackets for $15 as these folks threat $150 as I threat $15. Some of them are just given away to charity shops etc.