Absolutely, I agree 100% but it can be rather subtle differences. Changing the strings to a completely different type will change the tone&dynamics of the instrument a LOT more than the difference between a vintage Fender 1960s bass (or any MIA) and a brand new Squier CV60.
I'll have to disagree here. There is no magic string that can turn a Squier into a vintage Fender (or even a new one). Sure, you can change the tonal balance by strings, you can even change it a lot by the way you play. However, no string can make up for the resonant qualities and sustain (or lack thereof). No string can make up for this nice tone definition that good pickups give, and that's something that is very apparent in the mix.
At 1/4 of the price (and much less for a vintage instrument) it is to be expected. There is a very good reason why people still by new and old American Fenders. It's not only the quality of materials and construction.