Yeah - agreed you have to shop carefully... But the Squier 3/4 scale strats were a good junk shop find, hold a tuning, and the pickups aren't too shite. Samick did some good half scale electric guitars. Plenty of others to try, ebay is your best friend for these kind of things. Can't speak for the quality of most kid's size acoustics, but I bet there are some half decent bargain brands.
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