The part that always kills me is if you advise someone not to throw money away, then your a snob and an *******, but if someone with cheap gear says that expensive gear isnt worth it, he's right and everyone has to chip in with "My $200 XXX is way better than a $2000 YYY" and no one wants to call that person a gear snob or (probably more accurately) uninformed (not stupid)or just plain jealous.
Yeah, I know what you mean. I'm inclined to think that the majority of people who say their cheap gear is better than your more expensive gear are just defending their bad purchases, or have never played a guitar better than their cheapie.
There's a reason people are ready to pay ridiculous sums of money for good guitars (PRS, Gibson, ESP, Ibanez, etc.) and high end amps (Mesa, Marshall, Bogner, etc.). The reason being, that it's superior gear.
Don't get me wrong, I love cheap gear. If it weren't for cheap gear, the majority of us probably wouldn't have even picked up the guitar, but at a certain point you have to realize that you need to upgrade your rig, because your Squier or GIO Ibanez is holding you back. Cheap, crappy sounding gear just isn't very inspiring.