As expensive as the router seems, over time the bits and accessories will likely add up to a lot more. I have several routers and dozens of bits, and a homemade table. It's an extremely useful tool that can do joinery, edge shaping, circle and curve cutting, rabbets, dados, grooves and much more.
My advice would be to invest in a good 2+HP 1/2" router with a plunge and fixed base. Start out with a basic set of carbide bits and add to it as the need arises. I tend to buy mid-quality bits and replace them when they invariable chip or get dull.
You can definitely make a serviceable table for well under $100 out of some melanine and a T-track kit from Rockler or the like. Having a stationary set-up dramatically increases the usefulness of a router.
If you feel the need to spend a little more money on routing, there are a couple of things that I use a lot. One is a laminate trimmer, which is great for light duty edging and round-overs. The other is a Leigh dovetail jig. It's pricey but makes true dovetails (not the hokey rounded corner ones). The purists may flame me for this, but I can make a dozen drawer boxes in a couple of hours that you can't tell from handmade.
