i think you could do more with this camera, plastic fantastic 50mm 1.8 and flash (you can find new yongnuo flashes for 70-140$ depended is it manual or ttl) then with some new Canon 700D and a kit lens.

Absolutely. For me the question would be whether to spend the extra $250 to move up to a 5Dii and get live view, which I use a lot. My ii is a backup now but I was using it as primary until the middle of last year, it was a real workhorse camera for me.