I have also heard that. I did have an Encore very similar to the one in the original post and it was very nice, certainly for a beginner guitar. I carried on playing it even after I had progressed onto a Fender, it was just as good to my inexperienced ears. I only sold it because I became embarrassed by playing it instead of my Fender.
I am not as worried by that image now and take a great delight in playing my homebuild Strat with Squier neck and a couple of Vintage VZ99 Zip guitars from the mid 2000s, one like a Danelectro with lipstick pickup, and another the same but with a humbucker. Brilliant guitars, irrespective of price and I love it hen people turn their noses up at it and then I play it with the band and you get a grudging shrug of 'it's actually pretty good...'.
So to sumarise, the Encore and Vintage brands are good quality overall and perfectly nice guitars.