Ugh, no! I love a good bargain guitar myself, but I can also tell what's a diamond in the rough, versus what's just bad. I can tell what repairs are needed, etc. A lot of cheap guitars are unplayable, and can never be made to play well and sound good, no matter how much effort you put into them. Just because usable cheap guitars exist does not mean that all, or even many cheap guitars are usable.
I don't think that's true for a beginner who can't really tell the difference, and I think that's also a discouraging sentence for people who are wondering if they should try learning guitar.
Data point: I bought a used mandolin on craigslist for my first instrument; it had such a high action that it was literally unplayable unless you were a robot with clamps for hands, but I didn't know know that because I was a newbie.
> I don't think that's true for a beginner who can't really tell the difference
Yup. My first (and only!) guitar is an Ibanez Gio. I paid $55 for it and a practice amp. The amp sounded like garbage, but piped through a $100 Peavey Vyper or through Rocksmith and it sounds pretty good.
But I'm an extreme noob. I imagine an experienced player could pick up on all the shitty sounds it produces. The only time I ever notice it sounding bad is when the strings need replacing and the pitch of a note wobbles all over the place and they go out of tune in 15 minutes of playing.