I think it all comes down to "expectation".
I sell, so I handle a lot of Axis, 783, Patriot's and Americans. The group of them is very popular with first time hunters or guys that are finally retiring their Grandfather's old 303.
I point out the quality or lack there of. I point out the sharp edges, the marks in the metal work, the poor blueing, the sloppy bolts, the cheap hollow stocks and in the case of the Axis, the trigger that takes two men and a boy pulling on it to get it to fire. Like seriously, for about 150 more bucks you can get a Model 11 which is a pretty fair "starter rifle".
But "they" don't care. They have an almost non-existent budget for this "tool" that they will use once a year and if the rifle comes with factory glass then all the better. They are going to spend a week with the boys mostly drinking beer and smoking cigars "out in the woods" and if they wake up early enough they are going to sit a stand for deer - at least if it isn't too cold or wet out. Then the rifle is going back in rear of the closet with the mfg supplied trigger lock and will remain forgotten until next year unless they are "busy", then it will be the year after that.
For "them" this "gun" allows them to get away for a week and "do some hunting with the boys". They could care less about fit/finish, quality of the stock, resale value etc - they want something that will go bang and hit what they aim at (with the cheapest box of shells they could find).
That is the "typical" guy who buys one of these and it's over 80% of the type of guys buying any gun where I work. For every X-Bolt or Mod 70 that goes out the door, 4 Axis go through the register. That's what "typical guys" buy so while I might order a couple of model 16 Savages in my order there will a couple of dozen Axis on that same order sheet - that's just the reality.
The majority guys/gals that frequent this forum "love guns" - they like to look at them, fondle them, take them apart, play with them and shoot them a lot. They want a nicely finished, quality product. The consider "value for the money" over "price" so they see the "value" in a Vanguard II or a T3 even through they could have bought 2 or 3 "budget rifles" for the same price. But I would suggest that "that type of owner" is NOT typical - most guys just don't care - at least not the one opening their wallets on a daily basis right now...
We're not all one-or-the-other. I LOVE guns, and consider myself a true gun nut like most of the people around here, but I am also a fulltime student, with kids and a wife on disability. Buying a $1000 rifle is simply not in the cards right now. I dropped about $235 for my Axis XP(after mail in rebate), and at that sort of price I would recommend them to everyone, all day, every day. For that sort of price, they are amazing rifles.
It's 2016. A Bic Mac meal at McDonald's costs $10, a dozen eggs $3.50, a good steak $15, a tank of gas $100, a new truck $45,000+.
Why people expect to get a quality new firearm for $400 is beyond me.
2.5 dozen eggs is only $6 at costco, if you are smart you'll buy roasts and cut them into steaks, and get good steaks for $5 a piece, and if a tank of gas costs $100 then you drive a fullsize truck - my ford Escape only takes $60 to fill. And a new Ford F150 starts at under $26000.
So for people who seem the need to spend $50 000 on a truck and $15 on a steak, then I guess expecting a good rifle for $400 is crazy. For those of us who know how to find a deal or be thrifty, $400 is a lot of money to get a rifle. Hell, for $400 I got my Axis, a beat up Enfield sporter, and a box of ammo for each one. (granted, this was 2 years ago, you'd probably be looking at $500 in todays weak dollars.)
What I don't get is why guys don't just pick up a good quality used gun - get a Parker Hale, BSA, or similar. They can be had for the same price as these new budget rifles, they come with real metal and wood, and the quality is light years ahead. Even the old 303 sporter is a better made rifle. Sometimes progress isn't progress.
You are absolutely right. You can get a very nice used gun for a very reasonable price. I've noticed the resale market has not been effected nearly as much as the retail market, so I'll be buying used rifles for the immediate future. There are a few milsurps on my list that I want to pick up soon before they get too expensive (K31, Swiss mauser in 6.5x55, an 8mm mauser of some sort (chek ones are still pretty cheap...) otherwise I have been getting very interested in some of the older Parker Hale, BSA, ect rifles that I've seen on the EE. I've always wanted a 7mm rem mag...
The problem with that is people - especially new gun owners, who dont know much - are weary about going the used route. Without knowing what to look for in a used gun, it is hard to know whether it is a good purchase or not. On top of that, there is always the worry that you are going to buy someone elses headache, and end up with a gun that has issues. If your brand new gun has issues, most stores will try to make it right, or at the least you've got a warranty. If you buy a used gun with issues, there isn't much you can do about it.