I have a Crafter TRV23/N travel acoustic with steel strings.
It performs close to a Baby Martin at a fraction of the cost.
When amplified (via a decent pick-up), you cannot distinguish it from a full size.

A friend has a similar unit from Tanglewood with built in pick-up.
Once again, this sounds great for a budget guitar.

When you are gigging, you need a decent sound but also the risk of damage (or even theft)is greatly enhanced. Consequently a budget guitar makes sense, particularly if it sounds great too.