i have a squier affinity strat. and don't think im lying when i say it's a good guitar, because i've played some strats, and i'd prefer my guitar to some of them. it has good action, great neck and it serves its purpose. even the local guitar tech and all my friends say that.

now, when i do a full bend (1 semitone) bend the high e string on the 16th and 19th frets, it cuts out and makes a crappy sound, its touching the fret infront of it.

is it worth getting this sanded down or something at the local store?
what this guy said above me and the squier only feels better because your used to it

Fender Standard Tele (with kill-switch)
PRS SE Custom
Fender Hot Rod Deville
Boss DD-3 Delay
Boss GE-7 Eq
Boss DS-1 distortion
Electro-Harmonix Big Muff
Boss CS-3 Compression
Digitech Whammy
Dunlop ZW-45 Zakk Wylde Signature wah
thats true, i really think if you took a go of a nice US or Japanese strat you will change your mind, but for the time being if it feels good play it,
I actually like my Squier strat too, the neck just feels really nice but it sounds pretty bad. If I changed the pickups I would definitely like it better than some Fenders that I've played.
Try raising your action first. If that doesnt work, google fret dressing a read a bunch of articles on it.
Check your neck bowing too, it can cause problems like that.

Other than that, use thinner strings or raise action.