I have a number of Hernandis guitars (classical and Steel String Acoustic), which I've picked up within the last few years.  I'm no great player, but I have a great ear and I know what I like.  I enjoy playing and have picked up a few Hernandis guitar after getting a steal of a deal on my first one an acoustic steel string from 1971.  I can echo the guide posted by dncksc, in which he notes the qualities of his Hernandis.  My steel string 4-0 is sonically the best acoustic guitar I've owned and among the top of the many I've ever played.  It was so good, I went on a buying spree on classical  Hernandis guitars, though I don't even like to play classical.  The steel string I have has aged wonderfully and is loud, with fantastic projection.  The lows are deep and full and the ENTIRE guitar shimmers with the richest tones and overtones I've ever heard.  I honestly feel I can clearly hear almost three different tone/overtones from any one note I play.  However, it was built, the result for my steel string Hernandis was magnificent.  I would put my 4-0 up against any high-end or expensive guitar for sound quality.

With that said, I think there have been some people playing games in selling some older guitars with misleading or incorrect statements or comments.  I probably fell for the collectibility thing once in my first Hernandis classical purchase, but that doesn't diminish the quality of the guitar, it speaks to unscrupulous sellers and those among us who sometimes fall for the their hype.  

I would also vouch for Jim Sherry as very reputable.  I had the luxury of working near his store (still in business and selling a few of his old stock of 70s Hernandis guitars) here in downtown Chicago.  He will tell you every detail about the production of the guitars from year to year, and strikes me as nothing but honest and proud of the guitars.  As a merchant (and an operator of a classic music store with loads of vintage high end instruments besides guitar) I think Sherry is reputable and can ask for premium prices for his remaining stock of those original unused guitars.  If you ever went into his shop on Michigan Ave., I'm sure that average person would get the same impression.  Just because that's the going rate from him, doesn't mean that these are necessarily collectible or that his price is the benchmark for a current value on the open market.  His guitars are 30 year old NEW guitars!  It's not a proper comparison to a used one of unknown condition and shape on our beloved eBay.

Let's not get taken in by anyone who wrongfully implies the build methods or origins to hype the value.  All Hernandis guitars are clearly labeled as to their components and their place of construction.  Open your eyes and ears, friends.  Guitars are to be PLAYED!