I used cheap scopes for a long time. There are some out there that will certainly hold zero and provide decent service. The difference that I see between a 200$or less scope vs a 300$ and up scope is; better light transmission and much more resistent to fogging. Most scopes in the 350 and up range are dry nitrogen filled to help prevent fogging. The lenses have much better coatings and more layers of them which boost light transmission. And finally the lenses themselves are just flat out better glass which also helps light transmission. They also tend to be covered by a much better warranty. I've used World Class Tasco's, mid-range Bushnells, and Simmons scopes. I know and remember how they performed in low light conditions. The scopes I use now (Pentax Lightseekers, Leupold VXIII's, Zeiss Conquests) blow them away. Those cheaper scopes would also fog up badly especially on cold rainy mornings

Now that said, I personally cannot see enough difference in a 400 dollar Zeiss Conquest and a 1000 dollar Zeiss Diavari to warrantspending an extra 600 dollars on one. I'd like to hear from the people who own one, what one of those 1000 to 1200 dollars scopes will do that a 400 dollar Zeiss Conquest won't do.