I've only put about 400$ into recording equipment and my quality is straight for my liking...Once I start mixing with better monitors I will be at a demo-quality level whitch ain't that bad. It really depends on whos behind your music, if your working with somebody who really has a str8 head on and knows what their doin then you will be str8, but if you got a dumb mofo behind the boards then your music will come out that way
What are the chances of getting good quality out of a home studio? Its a good chance, even Snoop dogg has put out lil projects from his home studio.. It depends on the people/person behind your music, after a good raw vocal is produced from the artist, then its all on the engineer and his/hers creativity and ear for good clean leveled sound. You do need standards for equipment though... can't put out good soundin music with a 30$ mic and computer speaker monitors
But yeah, it depends on whos engineering the sound!
pz