[Stratrat]

If it plays good and sounds good to you, keep it for a while and practice away on it. Don't worry about what guitars other people are playing or what brand names are on their equipment. Too often, the hobby of playing guitar becomes more like a fashion show. There's nothing wrong with having good equipment - even GREAT equipment....but neither is there anything wrong with being a beginner who can't afford that kind of stuff - or eventually, being the cat who can really wail on some cheap little beater axe, either!

On the other hand, if you've just GOTTA have a better guitar and amp, then put it on flea-bay and get out your wallet! Just remember that there's nothing wrong with having/loving a cheap guitar if you enjoy playing it and like the music that comes out of it. A "real" guitar is one that has strings and makes good music - nothing more, nothing less. A good guitarist on a cheap guitar and amp will sound better than a wanker on a top-of-the-line pro rig every time.