In the studio, you can do anything. I have seen POS guitars used that sound great after engineering. I have been present at Buck Owens Studio in Bakersfield and witnessed this and I've seen it in less famous studios.
Live tone is another matter. things like speaker response, EQ settings, comfort with a given guitarvand technical proficiency come into play.
If my live tone is good, I won't burn studio time working out all the bugs...