Definitely. Next questionā¦
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I agree; donāt replace but cover more ground with a second guitar.
It will give a different mood, a different feel and different inspiration.
That is of course, if you have the money for it.
If you need to replace money wise, I would recommend sticking with it a little longer and saving up for a better second guitar.
The $500/$600 will be a hefty difference with the $200 guitar but make sure you test what you can to know what you are looking for.
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I agree with Eddie above -i.e. set it up right !!!
- Decide on what strings / string size to use - many acoustic guitars come with 012/013 to 056 strings. But for a beginner your life will be better with 011-052 and I suggest Elixir Nanoweb coated strings (std on Taylor ) !
- Take it to a Luthier since you need to adjust the trussrod according to the strings and the also see if the stringheight needs adjustment.
No will be soooo much easier to play !
Regards
Thank you for all the responses, far more than I was expecting!
It sounds like I picked the right guitar shop as my strings are 11-52s and I have had the ruler out and the set up is pretty good, 2mm from bottom of string to neck at fret 1 and about 3 mm at fret 12.
Whilst there has been loads of āYes! Upgradeā advice, I am going to be potentially controversial here and say the reasons seem to be related to G.A.S.
Happy to be proved wrong, but I havenāt heard a case so far that a more expensive guitar is going to improve my playing (moreās the pity!) as it seems that the set up is already pretty good on my Aria.
I will be really interested to hear any opinions as to what the price point for an acoustic (not an electro-acoustic) is that actually makes a difference to the player above making you more likely to want to play with your pretty new toy because it looks gorgeous!
Is a Ā£1,000 guitar any better to play than a Ā£500 guitar or a Ā£500 better than a Ā£200 guitar?
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āHow it playsā is only one aspect of a guitar.
Probably less applicable to a total beginner but there are a lot of variables in there , fret width, radius, neck shape and size etc, and more with acoustics (what woods, what construction, what size) and what electronics (pickup/preamp - are you going to use it at all etc).
Theres a deal of difference in exactly the same acoustic guitar if one example has rosewood back and sides and the other has mahogany (and one isnt ābetterā than the other just different)
And thats ignoring the potential to have one in an open tuning or whatever so you dont always have to retune
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No money can buy you a shortcut for not practicing.
However:
There is a video where price on guitars is tried by Brandon Acker playing blindfolded and trying a different range of guitars. - When it comes to a cheap Yamaha guitar, he totally fails ( reason was a big surprise to me). - In general this video shows the difference in guitars and why it can be worth buying an expensive guitar. - In my case it have nothing to do with GAS and I think for many others it also is the case. - Really worth watching.
PS Edit: it is this one, starts at 10:24, where he is handed the cheap Yamaha.
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Youāve stuck it out for 18 months and I know you said youāre still not very good but Iād bet youāre better than you think, most of us as beginners always think weāre not very good because weāre always comparing ourselves to others who maybe learn quicker or have been playing longer. if you have the money I would definitely get out there and try some at the budget you have, you might find a guitar that blows you away and that can be very inspiring.
āYou donāt train for a marathon in flip flopsā
Buy yourself and your future self the guitar you deserve 
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Luv that quote! 
There are some good reasons for not upgrading, but there are tons more for getting an upgrade, when you have decided to stick with playing a guitar.
String gauge is not the only thing with strings. There are different types, that makes different sound despite having the same gauge. Also there is what tuning you use. everything from 430 is the lowest my tuner do and up to 450.
@RobDickinson mention many good reasons for why an upgrade could be worthy. There are so many variables in this. Also if you are to fingerstyle play, you might find it a lot more easy with just a tiny more space between the strings.
Wood type seem to be a major factor in sound. But I have to do some more diving into that, before really knowing about it. But as one who do carving and have worked as a carpenter, wood is not just wood. How it transfer the sound is so different. Also is it fertilized grown trees versus not fast grown plays a role, as the wood grain (how tight the rings are when a tree is cut, the year rings) are closer together with a slow growing tree than a fast growing. (English my second language, so not sure the correct term here)
All in all, there is nearly endless variables into the sound of a guitar. For me the aesthetic and the beauty of the wood also play a role. But that might not be a factor for some or most.
Still, no money in the world will make you play better. It all comes down to practice, but you are more likely to pick up your guitar and practice if you luv the sound and the feel of the guitar.
This is a great video on showing you how 2 different woods change the sound of exactly the same model guitar. One is more focused which works better in a group, one has a wider sound and works better on its own
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I follow Brandon and have seen these videos, theyāre pretty awesome. As much as I love classical guitar, it is way beyond me, I think Iāll stick with electric rock and roll!
As to the OP and upgrading a guitar, Iāve only been at it for 3 months and Iām finding myself looking at acoustic, already having an inexpensive electric. I agree with those who have already said go out and play some if you can. I hope to do that this weekend when I get down to the Detroit area. There is only one store near me and they have a very limited supply.
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Yes, you should for sure go for it. Out and try different guitars. Investigate, explore and have as much fun end joy as possible. All these unwritten rules and boxes and what not. It is like taking on one of those suits they used on mental hospital in old days, to restrain people (donāt know what they are called, canāt even remember the Danish word for it ) 
Brandon is great and very talented player. I luv the sound of classical, but very far from being able to play those amazing pieces.
I really like the sound of acoustic and the steel strings. Electric guitar have no interest for me, for several reasons. I like to go down to the creek nearby and just sit there. Now itās springtime and soon warmer, so can bring the guitar and sit and play there. Itās not that easy with an electric.
I also like the simplicity of the acoustic guitar. I donāt want any electric stuff in my guitar. I want it clean and no cutting in the wood or anything, just plain and simple. Just a personal and individual preference and something I would go with even I was the only one in the world having it like that.
I live in an area with not that many people. Guitar shop is not that big, but still have a good amount of standard guitars. Also a local brand, Santana, Danish build guitar. They are pretty cheap. Itās like 25 minutes with train, so not that much trouble for me.
There is a bigger city 1 hour by train from here, so might go there some day and have a look at the bigger guitar stores. But I actually prefer not going to the big city.
I have yet to try another guitar than the one I bought. 
I have nothing at all to compare with. I never look at reviews, because it doesnāt give me anything at all. I do however like to watch videos like the one with Brandon and the one about wood with Paul Davids, but due to the compression and sound via the net and individual prefs , it is not something I can rely on. - Also the feel of the guitar is impossible to get, unless I am actually sitting with the guitar.
I am without a doubt getting a second guitar. It will take some time to do some investigation and I will try out different guitars.
It for me have nothing to do with G.A.S and even if it had, then so what, that is my personal business and I take care of that. I am too old to have a nanny to run around telling me what to do. Itās almost 50 years since I learned to take care of myself. I donāt hand over the nose-rope to others. I am the captain here on my ship
It is all about our individual mindset and preferences. For me itās certainly not a hobby. It is something I luv to do. Also with music I see it as an art. Just like wood carving, making poems, etc. -
Some people are so scared trying out new things or do something that is out of the box, I think it is very sad. Many people limit themselves in so many ways and often feeling they would not fit in among others, if they donāt follow along. Like a mental prison. I find it very sad.
Out and try different stuff, if finding something nice with the price range you have and want to spend. Go for it, why not. Try make a deal when buying, some shop owners are humans too Donāt be scared to live life while itās here. 
Me neither!
Lots of digressions about tone woods and differences between cheap and expensive guitars. Wait, donāt upgrade, but you should get a 2nd guitar and keep the 1st one. Alternate tunings, covering different sonic ground, etc.
Nobody is answering your original question, which was why a more expensive guitar will help you to play better (given that your current guitar has a good set-up, which you have stated). Beyond the usual justification that youāll be more inspired to play, yadda, yadda, yadda (which you donāt seem to care about).
@jjw1 This was the original question: āOther than the thrill of the new, is there really any point in upgrading my guitar at my skill level?ā
The answer was given from many different view points.
Second post came this question: āIs a Ā£1,000 guitar any better to play than a Ā£500 guitar or a Ā£500 better than a Ā£200 guitar?ā
That also got answered from many different view points.
Also it was mentioned many times, that no money can replace practice.
So both original question and second question have been answered in details and from different view points.
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Another thought, from my personal experience, is that what I actually want in (or from) a guitar is evolving. I might have saved a buy or two by waiting a bit to further refine my goals and ideas.
Right now I am pretty happy with my guitars, but notice a few things I may like different. Like my classical is long scale and I seem to prefer shorter scale. At some point I will change, but it is a perfectly nice guitar and I think I will wait until I can better match my next purchase to my needs.
Yes, up to a point more expensive guitars are better to play. Of course depends on the specific guitar and there are exceptions, but they will generally fret better and have better necks. Applies more for acoustic than electric. They also feel and sound better.
Absolutely this. Spend the money you would have spent on buying a new guitar on getting your existing guitar set up. Thatās more likely to help your progress, Iād say
This is the problem we have with generics , all things being equal a more expensive guitar will be built better and play better but it doesnt mean it will be the right guitar for the OP or that their current guitar doesnt also play well.
Asking a guitar player if you should buy another guitar is like asking an alcoholic if you should have another drink.
@KimR if you like your old guitar and it plays well you donāt need a new guitar.
If you would like to reward yourself for sticking to practicing for 18 months and would like that reward be a new guitar then I say congratulations on the new guitar. Post pictures when you bring it home. You can never have to many guitars.
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The more guitars is better is BS. Have 2 or 3 guitars that are of high quality and it is where you love the sound of it and how it feels. It took me 7 months to find one guitar and 4 months to find the other. The 3rd I bought was on the spot. I have others but they are just shit quality guitars. THEY will never sound good no matter what you do. Make sure the electronics are very good, as well for acoustics
Hi Kim,
Like yourself I wondered if it was worth upgrading and set myself a series of goals to achieve before committing. I went from a cheap laminated Tanglewood to a Furch. The sound difference was incredible but the best thing is that the better built the guitar the easier it is to play. Certainly in my case.
Regards
David