I know guys that have Mini 14 and love them, but mine would not hold a 6 inch group at 100 yards. I have heard others that have had similar experiences with theirs. AR-15's are definitely more accurate than Mini 14's (and probably many bolt guns in 223), but you are right about the price being a little high. You might can find a used Bushmaster or RRA for under $700, but you will have to shop around.

Ruger makes the 10/22 in 22 magnum, and they are fun little guns. I owned one when they first came out, and mine was very accurate. I have also had a stainless Ruger M77/22 magnum, and it was super accurate. I prefer the M77/22's over the 10/22, but that is just me.