Hey try it out. If it keeps trackign fine and the glass is good enough for your needs, all the better. If you feel the need to change it, take a look at the Bushnell series.
And no, the 700 isnt a cheap rifle. It might not cost as much as a TRG-22 or a Steyr Scout, but it definitly is a great rifle. Will be accurate enough so that you can learn to shoot properly. I have shot groups between .3 and .5 inches at 100 yards with my 700 Police in .308. If you feel the rifle could be shooting a bit tighter, get a trigger job and get the action bedded, and you'll be good to go.