The AK is a perfectly accurate weapon with a much larger round.
Which one?
The 47 of course. I would have specified otherwise.
Then I have to disagree with you. The 47 is designed for close-quarters fights under harsh condition, without being repaired or cleaned too often. Thus, it is goes for reliability at the cost of accuracy.
Have you shot an AK? The round the AK uses is effective at 400 meters. The Ak is also not for close quarters but a medium distance weapon. You are thinking of sub machine guns. The AK being an assault rifle has a long enough barrel to be fairly accurate.
As for other cheap AK's that you can buy for a similar price, try the AK74, it is more reliable and more accurate, though it only has a 5.45 mm cartridge.
I don't understand your fetish for the AR-15 in this conversation. If someone is trying to get a hold on an automatic weapon, they want something cheap (it is for an illegal purpose, you aren't going to get much use out of it), reliable, and preferably putting out a heavy round to finish off the target. The AR has it's place in a squad, in distance target practice, and many other places, but it isn't a disposable weapon.