Bit of a dilemma, I have a '93 Squier Strat and am seriously considering changing it for a new American Fender Strat (poss. an American special with Texas Specials). Is there a big step up in build quality with the new Fenders or will I not notice much difference?
I also like the idea of larger frets as I think my old Squier may be a '57 reissue with little frets, single string tree and different screw spacing on the scratchplate.

Going from an old Squier to a modern USA Strat.....you will be blown away by the upgrade in quality......the wood will be better, the electronics will be WAY better, the hardware will be leaps and bounds better than the cast pot-metal parts on the Squier The Japanese Fender's are very good guitars too, but they are expensive used. Just spring for a new American Strat of your choice, be it the Highway One, American Special or the American Standard. For $800, the American Special will rock your socks off!

"Reading between the lines," am I right in assuming your Squire is a MIJ model? It seems to me your comparison is geared toward: "Should I spend the money on the American model or just be happy with the MIJ I have already?" If you can swing it, KEEP the Squire AND buy the American model. They are two diiferent types for sure. Although MIJ Squires may/may not be worth the same amount as a MIJ with the Fender nameplate, they are still very good guitars, nonetheless.

yes, it's an MIJ Squier. I wouldn't be able to keep both and to be honest if I had a new model I probably wouldn't touch the old one. It wouldn't be going far though, my dad wants it! The American Special are around £750 over here (around $1200). After looking at the website it seems the highway 1 and American Special are basically the same apart from the paint and pickups. I need to see if the Texas specials are worth the extra!

The Texas Specials are totally worth the extra. Besides, the Highway One has a satin Nitro finish, that although it feels good, will wear through and pick up dents and dings in no time! The American Special has a polyurethane finish. Good Luck