No, you read it right. He can get a better 3x9 or a fixed powered 10x scope for cheaper than he could a good variable 1-4. I agree that in theory a variable powered 1-4x is a superior scope for a gun that doesn't have much range, but I want to see pictures of your guys lever action rifles with these 1-4x tactical scopes you're raving about. Most 1-4s have an eye relief that is suited for AR-15 style guns, and I've never seen someone running them on a lever gun. I'm not saying it' impossible, just isn't happening very much in my experience.
More $$$= better scope. I have a few vortex scopes that are good values, but I haven't ever had a cheap scope that has better glass than my Zeiss, and the glass in my 1-4 Trijicon is considerably better than the glass in my 1-4 Vortex - both of them are multiple times better than any 1-4 you're going to find for under 500$.
If you're wanting to go hunting, get a bolt gun. If you want to get multiple shots off faster, there is an AR or variant in a suitable caliber. Lever guns are a compromise on both platforms, and offer advantages over neither (You're always going to shoot a semi-auto faster, and I a 700 Remington in .308 is going to be more accurate than your 30x30 Winchester every day of the week).
ETA- A fixed power 4x scope is a good option for a lever action rifle, if you're going to use it for shooting deer or want to shoot targets quickly. Most of the 4x scopes I've owned aren't great though, and I wouldn't want to put a Tasco on any gun that I was using for more than plinking.
I guess I have a different take on hunting... There are lever rifles available in various calibers ranging from 22, up to and including a 50.
This spectrum will allow you to hunt anything on the planet, with a lever gun. Don't get me wrong, I love bolt action rifles too, and have owned them from both ends of the spectrum.
Lever rifles are quite capable of taking game ethically at a reasonable distance. When I shoot at a deer or elk, having fast followup shots is the least of my worries. A well placed shot, equals a dead animal. It won't know that you are shooting a lever gun. I have seen to many people that buy bolt action rifles and put big scopes on them, and they still have no business shooting at an animal past 100 yards...
I guess maybe I don't see lever guns as being a handicap for hunting, because I'm not one of those that will willingly toss lead at an animal 4-500 yards away.
IMHO, that is not hunting. For me, getting as close as I can is part of the challenge. That is one big reason I switched to archery hunting about 9 years ago.
Now to get back to the OP's original topic, as you can see, there are varied ideas on which way to go. The only person that matters, is you.
There are no right or wrong choices, if you are confident with your rifle. Granted, I wouldn't put the cheapest scope you can buy on a hunting rifle.
Many have done it, but the durability just isn't built in. They usually won't hold zero, some will leak and sometimes the reticle will break.
When you put a scope on a rifle, the rifle will feel totally different. The short, lightweight carbine lever action, will not feel the same, and you have already said it doesn't feel right. Try taking the scope and mounts off the rifle, and see if you like the feel better. If you don't, you can always put the scope back on.