I would go for quality.
1. more fun/easier to play, better sound, etc. = motivation (also cheap gear sucks most of the time).
2. easier to maintain/learn/handle in most cases.
3. resale value if given up.
4. not yet
The Seagull guitar I mentioned earlier is a very good guitar for the money.
I don't know how they do it but speaking of sound they are far better than most guitars costing double the price or more.
Personally I own 2 Seagulls after playing all maybe 60 guitars in the store some of which were like 2-3000 euros, money didn't play a role back then.
The Seagulls I went for in the end were like 750 eur and the other like 650 eur only but sounded better by a wide margin somehow.