I don't think you can go wrong as long as you are at least buying a solid spruce top.
If he grows out of it- you can always sell a solid top on craigslist and recoup at least something.
For that matter- if you can find a taylor or something, it might hold resale value better.
In that price range, I was always taught to buy as much guitar as you can for the price, and add pickups later.
The guitar he chose has a solid spruce top, and plywood sides with a mahogany veneer. If you can find solid back on a used guitar- all the better tonewise and resell wise.
Also- in this price range, I always like to say, guitars are not like cars, where you buy a volvo and it drives like a volvo. One guitar might play really well, and the next one off the line might be a hit or miss- so playing the exact guitar you will be buying is key.
I have played some fenders and yamaha's that play better than supposedly much nicer martins, and vice versa, so playing a lot is key.
If he is loving the fender, great, but have him play some others for comparison. In my experience, a lot of these guitars in this range will seem awesome in the store and then over time, lose their luster after playing them. Have him try some different tonewoods (maple perhaps) and different size guitars (grand auditorium, cutaway, non cutaway, etc..) just for the experience of trying different things. He might not like them, but that's okay. If he comes back to the fender- great.
What I like about the fender type acoustic electric- is that it is done. Just plug it in and play, and the laminate sides/back will be more durable to teenage abuse than some fine tonewoods. Playability is key with these things, not some bindings/ exotic species of some extinct tonewood.
I wish I had some specific models or price points to suggest. My suggestions are just generalities, but it as much the father/son time as anything else.
If you haven't installed pickups, don't be intimidated. Under saddle pickups, and such are pretty easy to put in, and again- a good father/son project.
You may already know all of this
