JSandbloom, I'd say onstage, in the live gig realm, I agree with you. And most Guitarist's I've played with would rather that I couldn't be heard at all! Most preferred that I played a P-Bass with dead strings, never play above the 7th fret, and played nothing more than eighth notes, a few preferred a Jazz Bass, but the same fret range and note restrictions.
Most Drummers I've played with dig good bass tone, however. and obviously, most audience members will declare a band "good" or "bad" according to the band's ability to groove, which I feel is very dependent on the bass' tone. But most audience members focus on the songs being performed and the quality of the vocalists.
All in all, I believe most folks, besides the bass player in the band, really don't care about the bass' tone.
So, my goal in a live situation, is to provide a tone that I can hear amongst the other musicians, yet not overpower them with too much volume.
In a Recording situation, depending on who is in charge, there's a bit more attention paid to bass tone.