I didn't have the time to read through all 5 pages of this thread. So I'm just going to answer based on the threadstarter's initial post.
And I say, just go for the best. Save up, and 'whack high-end'. But that's only, and I repeat, only, if you are very certain that you're truly interested in the guitar and that it's not just some transient interest of yours.
Speaking from experience, as per many other SOFTies here, simply plunging in and getting the best is simply the smarter option, albeit daunting from a beginner's point of view.
Imagine you're an Ibanez fanboy.
First, you buy a $400 Ibanez, you improve and get better, and you realise that you can do with a better Ibanez. You sell the $400 Ibanez, losing a $100 in the process, and then purchasing a better $700 Ibanez.
And later on, you get even better and you grow out of this guitar, and realise, again, that this axe is holding you back. You sell it, losing some cash again, and then topping up more to get a better guitar.
And this will probably repeat until you get your paws on a swanky Ibanez Prestige. Think about how much $ you've lost by then.
And this applies to the whole spectrum of gear. From cables to pedals, amps to guitars.