The other brands you mentioned do not say, for ex: "Jackson by Fender" anywhere on them, do they? I highly doubt it.
I got the lowest price jazz bass that Fender puts their name on, an Affinity, btw it says "Fender" on the front of the headstock right under Squier. I'll put this bass against any USA Jazz bass that was made at the same time as mine.
As a matter of fact I did when I bought it, the $180.00 Squier won because the difference in price wasn't justified. All the savings going to a high-quality amp makes more sense to me.
Squier IS 100% Fender.They get their savings by the amount the factories pay their workers. There really isn't anymore to it than that.
This same hype, for lack of a better word happens with Gibsons as well. Do you really believe that a Gibson Les Paul is worth $2500-3000 more than a well made copy. Sure it's better, but not that much. As long as people will pay for the name they'll sell them. BUT not to me.
In a "Blind" test I bet that 90% of players couldn't tell whether they're playing a Fender or Squier.
No, because the people who buy them do not feel the need to validate what they are buying by having it associated with the Fender brand. Just because Squier is 100% owned by Fender, they are not Fenders, they are Squiers. That's why Fender puts Squier on the headstock, so people don't get confused.
And yes, some Gibsons are worth that much, just as some Fenders (the ones that sell for that much) are worth that much.
I own a Squier VM Fretless Jazz (sorry I forgot it had a Fender logo in fine print also on the FRONT of the headstock). I also own a Fender New American Standard P bass, and they are both worth every cent I spent on them. The Squier is a fine $300 bass, but let's not suffer any delusions here ok? It's not even close to the same class as an American Fender.
My objection however isn't about quality, it is about branding. You may feel that a Squier VM is better quality than a Mexican Fender, and for all I know you may be right, I don't have much experience with the Mexican ones, but the simple fact is that Fender chose to call the Squier a Squier, not a Fender (ok, Squier BY Fender then...

).
What's wrong with a Squier? Why do people constantly have to validate a Squier by calling it a Fender, or replacing the logo on the headstock with a Fender one? The new Squiers are fine instruments for their money, there's nothing for y'all to be sensitive over.
About the blind test - I assume you mean blind in the sense that if you swapped out all the hardware and rolled the edges of the fretboard, and replaced the decal, so that all you had left of the originals were the finished wood with common hardware? Maybe not for a Mexican Fender, or even a Japanese Fender. But I'd still recognize an American Fender in that test. If you want to throw in a blindfold too, then I'd likely have to look for the ferrules at the back of the body, I doubt there'd be much difference besides that - but night after night, gigging and taking it from my truck to the gig and back to the truck and then home again, I bet there'd be some differences after a year in the integrity of the finish, the frets, the neck, and whether all the hardware was still attached properly.