I think the vast majority of us learned to love foosball on crap tables... and I love the backyard beerfoos regardless of the table. I think as long as the ball is quality, table is level, there is minimal ball wander on the playfield, bars lubricated, and most of the components are in great shape all beginners and most novice won't care. I personally look at it as an opportunity to play with different people and practice new things (unless I meet a better player ...then it's full on...).
The only problem is as your crew gets past the novice stage you will want to invite and compete with others. The altered timing/angle of advanced shots, difficult ball handling, and overall lack of control will frustrate experienced people on a low end table. The crap tables usually have serious issues with clever play. Experienced players will definitely factor your table when deciding on where and when to play.
Regarding your table, I suggest you try to narrow your bumper somehow... I would recommend making a measurement of your bumper and go to a games/billiards dealer store and look for a bumper that is more narrow. Buy some samples and you can shim them thicker with very thin stainless (or teflon) 16mm (5/8") center hole flat washers to make em just right. If one plays good ... well... buy a set and finish at least the five bar rods. Jim from this site is really good with finding stuff to fit your needs ..what is your bumper thickness???
I personally would refit the bars to all warrior or shelti components for a number of reasons assuming you have standard 5/8" bars and figure size/height. That could get you your wall spacing (depending on your bearing shoulder width off the wall), better ball control, better figures, and a more standard feel to the table. Definitely try a variety of balls from this site; each high end ball has its own character and feel and can tweak your table just right! My buddy loves the fireball orange on his Harvard... Hard and fast play, reasonable control, wears out slowly.
It's been mentioned elsewhere on this site, but reasonably good used tables such as cyclone II or tournament soccer can start around $250. Keep it in mind as you progress...
Happy Foosin'