"How can anyone make a guitar for £200 or £299 that plays at all?"

Computers and lasers basically. The huge difference between guitar making today compared to even 20 years ago is that you have a computer-assisted design and laser-accurate cutting. So it's just much cheaper and more accurate and quicker.

I own several acoustic guitars and the most I have ever spent on one is £360. All of my guitars were made in Chinese factories. The cheapest of them is my Harley Benton mahogany parlour, about £150 new. Solid mahogany top, laminate back and sides. It's great, comfortable to play and does what I want it to do just as well as any Collings or Martin or Taylor I've played..

My favourite among my guitars is my Recording King ROS616, an all-solid mahogany orchestra size model. I have never played a guitar that I prefer to my ROS616, and that includes Lowdens, Fyldes etc. I don't see the point of £2000+ luthier made guitars frankly.

Ironically, the only reason I could imagine spending over £1000 on a guitar would be to commission a luthier to make me a replacement for my factory-made £360 ROS616 if it were to ever get smashed or stolen, as unfortunately the model is discontinued.