One thing I've noticed about my "kinda cheap" router is that it has horrible bearing runout. This means that the bit attached to the router will "wiggle" around and not stay completely true and perpendicular to the router plate. This wiggle decreases the accuracy of the cuts the router makes. While I haven't had an issue with the slot cutting bits due to this issue. However, any edge cleaning, straight cut bits, template bits become inaccurate to the point where you can feel and see the "wobble" in the line of the final cut.
For the record, I'm using a refurbished Black and Decker router that I found at their outlet. It was cheap, to the point where I probably won't mind buying another especially now that I've seen how much nicer it makes my final product by using a router. It was almost a trial run of sorts for me, and now that I know how handy and useful they are, I'll definitely invest in a "real" one, not a toy.
My plan for the replacement is to keep an eye out on CraigsList, as a few friends have told me that is "the place to go" for power tools. Apparently you can get some real deals on quality used tools, but you HAVE to know what you are looking for, looking at, and what you should pay.