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That decision comes years or decades after practice and learning, which people do because A) they find just noodling on the instrument fun, and/or b) they find improving their skill deeply rewarding, and/or c) they think guitar/music is just really cool.
A bad instrument can make the experience miserable, though. My first acoustic was fucking awful, just straight trash. How long does yours stay in tune?
Not true. Locations can survive on commuters.