OK, I went through this about a year ago. I bought a $100 Olympia travel guitar. I used to build guitars, and have a couple of old Martins, so I kind of know the difference. After looking around for a cheap "real" guitar, and getting discouraged, I figured maybe small and indestructable was good. The Olympia was surprisingly well set up--I really didn't have to touch a thing--and it sounded great for a $100 shrimp guitar made of plywood (or something that more or less looks like wood, anyway). It's not metallic and tinny, which is a real plus in a budget guitar. I won't kid you and say it was all those nice things people say about guitars: it sounds level good, without any bad traits. And it plays in tune, all the way up the neck. I don't mind playing it at all.
The Seagull S6 idea is an excellent one, too, if you want a full-size, fragile guitar at a bargain price. The Olympia--it travels in my trunk--no case--or hangs on a nail on the wall of my shop. Last week I lent it to a friend and didn't worry a bit about how it fared. There's something to be said for a guitar that you just don't have to worry about, because it really didn't cost anything at all, especially if you already have something decent.