Rabid - An acoustic electric is not fence-straddling. It's acoustic. The electric part just makes it sound like a louder acoustic when you put it through an amp.
As far as an AE in the $300 range, you have a lot of options more than Squire. As a minimum, check out Seagull, Ibanez, Alvarez, Applause by Ovation, Epiphone by Gibson, Washburn, and/or Takemine. There's nothing wrong with Squire by Fender, but Fender is much better known for their electric guitars than their acoustic guitars for a reason. Their acoustics are fine and if you buy one you'll enjoy it. But there are other lines that make better sounding guitars for roughly the same price. Solid wood top beats laminate (plywood). At $300, you're in a range where you can find either. Unless you fall in love with a plywood top guitar, go for the solid wood.
Unless you plan on needing to plug in right away, the electronics aren't a priority. If you are planning to plug in right away, be sure to test the sound plugged in as well as the sound unplugged when you're at your favorite guitar shop. I did this with an Ibanez and a Fender AE bass. Unplugged, they were very, very similar sounding basses. Plugged in and run through the same amp at the dealer, the Ibanez absolutely blew the Fender away. So when I say that electronics aren't a priority, if you do choose to get one with electronics, then getting GOOD electronics is worthwhile.