The PRS SE line hasn't diminished the brand, nor has G&L's Tribute line (they are actually pretty good). Ibanez has the G10 line, Jackson had the Dinky line, Fender has Squire. These aren't guitars that an intermediate or pro level player will be buying. However, for someone starting out, it could be a great starter guitar.
I'll bet it beats the crap out of the Silvertone I started with, or the Kent/Guyatone Videocaster that replaced it.