They [Taylor] make entire lines of cheap, laminate guitars.
Their lower end models—the 100s and 200s—have laminate backs and sides, but when you say "cheap" are you referring to price or quality? If by cheap you mean poor quality ... well, that I suppose is subjective, especially if the highly personal "I like/hate the guitar" evaluation is factored in. I have a Taylor 110 and I've read many comments from other 100- and 200-series owners, and never have I read any complaints about poor construction, performance or personal dissatisfaction with the instruments. I'm sure there are people out there who, like you, find these instruments to be of poor quality, but they seem to be a small minority, at least among those who voice an opinion.
They even have laminates approaching $1000.
As do many other reputable manufacturers—such as Martin. I should clarify: when I say "laminate" I mean a guitar with a laminated back and side and a SOLID WOOD top, such as my Taylor 110 (Sitka spruce). I am not, for purposes of this discussion, referring to guitars that are completely 100% laminate-made.
I just received my copy of the Taylor 2013 product guide and they discuss the use of laminates in their lower-end guitars. They're straightforward about laminate vs. 100% solid wood construction, basically stating the obvious:
• Building guitars with laminate backs and sides allows them to offer nice guitars at a lower price point (this, in so many words, is their production and marketing philosophy regarding laminates—whether you agree with it or not).
• All things being equal, solid wood construction is preferable (well, duh) particularly as the guitar ages.
I'm sure any player would agree that if you have the money, a solid wood guitar is the way to go. Not much argument there. But to say that all—or specifically, Taylor— "back/side laminate" guitars are cheap or of poor quality ... well, I'd dispute this as would many other Taylor 100- and 200-series players.
In the end, the proof is in the playing—if you play a 110 and like it, it's a great guitar. If not ... you put it back on the rack and play something else.