You may want to re-read what you posted.
Despite your tone, I did re-read it and in no part does it say
that Fender is simply incapable of making a good sounding instrument.
All my current instruments are either Fender or Fender-like, so as straw man arguments go, that one needs more effort.
They were "suspicious of any Fender sounding so good" so they took it to a luthier?!? That is absurd.
Say you come across a Fender Jazz in the ads. Looks fine, you plug it in to try it out. You solo the bridge pickup and you get the familiar sound of Gibson Thunderbird?? You'd think to yourself: "yep, nothing strange here. No chance this is just a Fender copy, given Fender is the most copied instrument in the world". I really can't think of nothing nice to say about that logic. We knew the luthier well and he was close, so it was a no brainer.
Then, when they found out that this bass was a faked Fender, it was suddenly not worth buying even though it was apparently tonally superior to "any Fender" (in the listeners opinion). I guess it must not have been all that great.
The standard of living in my country is low so buying an original Fender is akin to an American buying five of them at once. You must have a chance to resell the instrument if the need arises and in this case your only option would be
a) list it as a knock off instrument for the price of an expensive original (slim chance there)
or
b) continue lying it's an original Fender (and most people aren't that dishonest)
The sound thing is really not that difficult to understand. The sound quality of every instrument is subjective. A and B can be objectively equally desirable, yet B can be unique enough to suddenly warrant a lot of interest.
A buddy of mine had a black girlfriend once, in a country with so few black people you almost never see any, and she was turning heads left and right. If it was just a pretty girl it would be just like a good Fender. It's cool, but you've seen it and you know it. But when something makes you say "wait, what", and in a good way, it makes it more attractive than the alternative.