Sadly, I do think it's simply the way things are.....consistent quality seems to cost more money. Sometimes we have had to learn that the hard (read : expensive) way, but that is a part of the journey from beginner to intermediate/ competent and possibly further. The ears and understanding of the instrument develop along with the time spent playing.
The problem is for beginners, parents of young learners, students and older players who have larger financial commitments, i.e. family, mortgage, kids expenses (schooling, clothing etc. etc.) ....in other words, those who have very limited funds to invest in music gear. Nowdays, there are plenty of cheap instruments that appear to have all the right appointments and look the business. It is, as is being mentioned all through this thread, a minefield sifting through all these low-priced instrument trying to find one that might be durable and last for a couple of years without causing the owner grief, and issues which they may not be aware of, and probably won't know how to deal with when they do discover it/them.
In the late 80's I was teaching at a music school, and if one of the students was thinking about buying a new instrument, I would tell them to find a few that they liked, and then I'd go with them to check out the ones they'd seen. I'd like to think that i saved a couple of them from buying something that was going to cause them problems along the track, and maybe steered them toward something that would keep them going for a couple of years without trouble.
It is not easy for someone with very limited funds to find good instruments, and I think it would be smart for them to try and find a more experienced player to go with them to the stores and take advantage of their more experienced eyes and ears in the quest to avoid buying a lemon. I think it is helpful if some of us make ourselves available to help others in cases like this, should we become aware of their desire to find a new instrument.
I'm also not sure whether saying 'you have to spend serious money to get a proper instrument', (even though it's largely true), is very helpful for those with limited funds. If you only had 2 or 3 hundred dollars to find an instrument and people start saying 'meh, you'll only get rubbish for that money', it must be a bit deflating for the budding player. Those with limited funds are already being overwhelmed by a smorgasbord of shiny, flashy instruments in their price-range, stuff that looks just like the gear their idols use, and no-one to give them a fair and honest appraisal of what those instruments may really be like behind the appearance.
Yeah, many of us have journeyed to the point where we own and play expensive instruments, but hey, let's not forget where we came from and that others are at that point and need help trying to find something decent in a sea of shiny poop, and they have very limited funds. They need our help more than they need to be told they haven't got a hope. And one thing we can do is lend them our experience in trying to find an instrument that will see them through the next phase of their development.
Just maybe it might behove us to try to understand and help, and remember that most of us began from a similar point, and if we had an instrument that we managed to learn on, it was quite likely luck that it didn't cause us too many problems. (Being a relic from the '70's, I gotta say that at least nowdays cheap instruments are probably better in many ways than the cheap instruments when i was young).