Ah, the old "I can't tell a difference, therefore there is no difference" fallacy.
Oh, I think there's a difference. Higher end instruments tend to have better quality hardware and electronics. But with decent specs and CNC machines, those Asian cheapies can be great and (to me at least) often compete with their much more expensive bretheren as far as overall feel and sound.
I always say that (in general) a Squier is 90% of a Fender at 10-25% of the price, just my personal opinion and experience though. (I WILL say that back 15 years and more ago, asian cheapies were often unplayable junk. But that ain't the case anymore for the most part.)
I can't really tell the difference between a $10 bottle of wine and a $100 bottle of wine... but I believe that some people can tell the difference and enjoy spending the extra $90 on something they really like and appreciate.
It's actually been shown in numerous studies that if you repackage a cheap wine and lead people to believe it is some exotic, vintage wine, even supposed "experts" will fawn all over it. I read of one in which the people conducting the study put Riunite box wine into some fancy-schmancy French bottle (famous in wine-tasting circles) and the experts went on and on about the depth and richness of notes, the overtones, the history of the vintage and the area in which the grapes were grown, etc.
Similarly, one can find audio A/B comparisons all over the internet of the cheapest Squiers or Epiphones played next to the highest-end Fenders and Gibsons and a high percentage of listeners can't tell much of a difference or actually choose the cheaper model as the better sounding one.
It's like anything else in life: the difference only makes a difference to you if it is important to you!
Now that's the truth! I couldn't care less what other people play. More power to the people who like to own high-end instruments. That can be a wonderful thing, as can owning dozens of basses (which also doesn't interest me in the slightest) but as long as it intonates well, has decent action, holds tune and sounds decent, I'll play it and love it whether it cost me $125 or $2500. 99% of an audience won't care or be able to tell the difference anyway.