You can get really nice acoustics for under 200 squid these days Yamaha do a stonker for about 180
But surly its about what the guy wants to play if it is electric then Ibanez do great guitars for as little as 150
Which Yamaha model? I have an aging Yamaha that has been with me for years and is my 'cheapy' that comes out if I'm going to one of 'those' kind of gigs where taking my posher acoustic is not desirable.... The old Yamaha is getting way past its best (deep furrows in a few frets) and, whilst it works, it's not got the most resonant tone to it so I'd consider a replacement at that sort of cash.....
And Dave - if you read back, I was actually agreeing with you so I don't understand the (very mild) telling off in my direction