First: better than I could ever say it, a current SFI discussion on price vs quality:
http://forums.swordforum.com/showthread.php?s=&threadid=60244 You can pretty much disregard the rest of the post if you like.
A) What's the name of the particular model? Is it a Hanwei piece (if so it's likely the PK at that price level)? Or is it the
Outworld katana which isn't a katana at all? Likely, since it's by MRL, it should work okay, and is tempered (usually) a little soft and through-hardened. However, this is just my opinion assuming it actually is made of decently high carbon steel and is heat treated adequately.... and the retailers/makers don't lie. Stainless steel is carbon steel too

. Balance might also be an issue.
B) Sword snobs? So unless we agree with you we're sword snobs?
I'll say this: how much consistency and performance is pulled out of the materials, not to mention the quality of construction, polish, and geometry are almost entirely direct reflections of the price (not MSRP) - thus a custom smith's work is pretty much as good as it gets. Then there's the unsubstantial portion of the value - nihonto or not? Juyo token or nameless unpapered piece?
C) All production swords are shortcuts of some sort that lead to decreased overall quality (aesthetic or otherwise). This holds whether speaking of these cheap examples or Bugei Chinese-made blades.... the cheaper it is, generally, the worse the "katana". This disregards scams. Thus something on the order of 100-200 dollars is pretty much bottom-line functionality. The older-gen PK can handle very light targets, thin plastic bottles, pool noodles and occasionally even thin < 1 inch bamboo if the heat treat is decent - though this varies wildly - and if the skill of the practioner is sufficient. If there isn't enough "meat" behind the blade you have issues with support for the edge.
Some thoughts: the handle may be epoxied on if it isn't "full-tang" - this should be fine, decent epoxies are stronger than the wood they hold together

. If riveted, this COULD work but I wouldn't consider it a katana. Not sure how you'd find this out without handle destruction, so ignore it if you wish. How thin is the blade and is there distal taper? Where is the COG and how does it feel during off-line thrusts and during cuts? Does it feel tip-heavy during motion? How strong is the handle - is there any rattling or fit issues? Is it comfortable?