I am with the crew who suggests getting better glass before getting a good body. Definitely. If it wasn't for the budget.
However....for a beginner on a budget, I reckon spending a big chunk of your start-up on a single bit of good glass is a just a bit perilous.
For a budget of $700 how much good glass can you get while getting a serviceable camera as well? Assuming one scores a good older body for $200 (possible) that leaves $500 for the good glass. How much god glass can you buy with that? More precisely, how much can you buy as a BEGINNER, assuming you don't have a mentor to guide you? Even then, how can you know what type to buy, remembering that the next lens is probably some way off? So, the issue I see with the good glass option for someone starting out is that unless they have a rock solid idea of what they want to do they are just as likely to end up with an expensive lens that doesn't suit their purpose. That's why I suggest cheap glass to explore a wide range of possibilities, and maybe even save some of that initial capital for a tripod, some software or even a course? Good glass is always good... but I think it is over emphasized for beginners. When doing that hard prioritizing under a budget, other stuff should come before that first really good lens.
I think Just1MoreDave Illustrates a good selection of ordinary glass (ie: not necessarily nasty, definitely not "good") with the 18-55, 55-300 and prime. You might just be able to do that if you score a cracker of a deal on the camera and were happy to go with DAL zooms and a manual prime. If you could somehow manage it for the said $700, I would go with that selection over an average body and one good prime (or a good body and ordinary zoom) for someone just starting out with a tight budget. My only gripe is that you could get a really good percentage of that performance at a fraction of the cost. Also, it lacks a tripod and no room for all those little extras like filters, a spare memory card or battery, a lens cleaning kit and all that other stuff that chews at the initial budget.
So I just don't see how "good" glass comes into it if you are looking at a starter kit for under $700. Unless we are talking about some natural prodigy, the beginner will take the same ratio of clunker-to-keepers regardless of whether they are shooting with great gear or cheap gear. That ratio will rise and eventually plateau with cheap gear, at which time the photographer will have a better idea of where to invest the next chunk of change in order to keep growing.
Actually... come to think of it, my final submission to the OP would be don't spend the whole $700... yet. If this truly is your first DSLR, buy a decent older body and kit zoom ( the Pentax DAL18-55 is happily one of the better out there
), with a few extra bits for $300 and then go out and shoot a whole bunch of photos. Keep shooting till your technique improves and you get an idea of what you really like doing. Keep the $400 in your pocket and see what you want to get in six month's time with that and whatever you have saved in the meantime. It just might be that cracker prime, after all
.