Unless you're mixing the 75-300 with the 70-300, then yes it really will be that bad, the 75-300 is a BAD lens. On all the sites I've linked to you'll find that its a pretty poor lens especially over 200mm. Specifically
http://www.photozone.de/8Reviews/lenses/canon_75300_456is/index.htm at 300 it never gets resolution over 1250, and thats just plain bad. Most lenses are over 1250 when the are wide open. I wouldn't use a lens under 1500 lets put it that way.
I've considered a prime for him, but unless he's talking maybe ~150mm then he won't find anything in his budget. The 200mm f2.8 Canon costs like $680, and the 300mm f4 costs $1200.
The 150mm I'm speaking of is my own personal favorite for macro lenses and a nice prime the Sigma 150mm f2.8 HSM EX DG Macro. Cost you around $500.