It could be that its the pickup, BUT, I've heard some pretty good things about the rare earth pickups (though they are on the pricy side.) That leads me to believe that you might want to try running it through an acoustic amp, fender makes a line of amps that aren't outrageously expensive ($420 retail for the smaller one, and $640 retail for the big one, might be more but i only know of 2 of their "acoustasonic" amps) specifically built for acoustic instruments (not just guitar, all acoustic stringed instruments, so if you want to plug in that mandolin, go for it.) As fender amps go, the deville is about as far as you could get from a pure acoustic sound, so i think it would make sense that you would hear an electric type tone. I mean you can practically play metal thru a deville. You're not going to sound like SRV with an SRV strat and a marshall stack cranked to 10. See if your local guitar shop has any acoustic amps, fender or otherwise. If you can't find them, at least try running it through a fender twin or something like that before assuming that the pickup is the problem (I don't know if I come off sounding like a fender fanatic, and while i do love fender guitars AND amps, just so u know, i play thru a line6 flextone, and i love that too.)