As you say Starise, great price for a Fender.
I paid a bit more than $1100 (Canadian) for my American Fender strat in the mid 90's. Never regretted it, though, obviously, you're always paying for the brand name. There are amazing instruments out there going for a lot less. But, I wanted THAT guitar, w/ the Fender logo on the headstock and the words "Made in the U.S.A" below it.
As I've mentioned recently, I've decided that I'd buy a Gibson Les Paul as soon as I have a bit of money coming in. The models I'm looking at are usually priced between $2-2500. At $2500 I would be stretching the psychological limits of the price I'm willing to pay. Heck, it took me quite a while to even consider a Gibson when I could have a similar guitar by Epiphone for 1/4 of the price.
But, relatively speaking, if I put $1100 on a strat, the Les Paul has got to be worth the bigger asking price, with its set neck and all.
These days, I often see Fender Custom Shop strats going for prices like $3000. Now THAT is something I can't understand. A strat is basically a plank w/ a lot plastic on it. I can't imagine what could justify a $2000 difference between a standard and a custom - much less sonically.