Alright, well I'm kind of, well...poor. I've had the same guitar since I started playing and the same amp for about 3 years.
I think it's safe to say I'm pretty damn good at guitar now (been playing about 6 1/2 years) but my gear could definitely use an upgrade. I wouldn't call it ****ty, I just had a real tight budget when I got it.
So, if you were me and you had this stuff and $700 to spend, what would you buy?
Yeah, and if you tell me to upgrade the amp, just keep in mind that 99% of the time I'm only interested in tube amps. I can definitely tell the difference in tone between that and solidsound (i'm not really familiar with the gear terms since I've never really had the money to upgrade it lol) or whatever it's called
I play mainly electric guitar (even though my acoustic is better). To give you an idea of what genre I play, most of the songs I know are by Metallica, with some Offspring and RHCP.
Amp= Fender Blues Jr (20 watt tube)
Electric Guitar= Ibanez AX7221
Acoustic Guitar= Ibanez AEF37
Randall RG50TC amplifier with a Visual Sounds Jekyll and Hyde OD/Distortion pedal. Ten bucks over $700, but well worth it.

Does your guitar still suit you well, or might there be something else you're interested in?
I got a Mesa Boogie head on ebay for $750. Mesa boogie is notorios for kicking ass. Carvin MT series has to be good, maybe a cheap XXX. I'd go to musicians freind, find out what looks secksi, then come back to UG with ideas, then go on Ebay or a pawn shop.

For $700 and playing metallica, you could buy an ESP LTD 400 seriese guitar, and for about $100 more you can get a deluxe which are amazing guitars. People usually are dumb as bricks and tell you gibsons cheap stuff sucks but thats not true at all, sure maybe they aren't as good as a $2000 standard gibson but you can get a faded or special series guitar for about $650-$800. Check out Agile www.rondomusic.net as well
Major of 7 String Legion 7 > 6

Carvin DC747
Ibanez RG2228
Schecter Avenger Custom Shop
and my baby....
Gibson Explorer Studio