IMO tone is important.
If I nail my tone then my fingers find it easier to do the what is needed, It seems I am not fighting my bass all night and because of this my playing improves. I am more relaxed and have more time to think on the spot.
Unfortunately the better gear I have bought has always been worth it.
Why unfortunate, because like many sometimes I do not have the money to get the better gear. [better gear = american std, mm stingray, you know where I am coming from]
The crowd, The crowd may not recognise good tone, true
BUT. well sought of. If you have a crap tone the audience will find you a touch irritating after awhile yet you ask them why and they will not be able to tell you. A good tone is easy on the ears, bad tone, NO.
Think a good guitar tube amp and a transistor one.
Of coarse this is less applicable to bass than it is to guitar but it does make some difference. [ I could be a little wrong on this

]
If you are lucky enough to do arenas or large gigs then the FOH is mostly controlled buy the board, and to some extent what can be delivered back to the foldbacks.
At the end the day what the audience hear does matter.
Yeah, I am for the best tone you can achieve with what dollars you have.