Great discussion, I can see both sides of the argument. (what rock and roll fan would not??)
However I think a lot of people are selling a lot of old records short by calling them lo-fi and by thinking by doing a sloppy job recording they will capture magic. Make no mistake those engineers knew how to use their limited equipment. If you think your going to get a Gary US Bonds sound by recording poorly with ironically bad choices your sadly mistaken. The 45's are so well engineered that they sound great un-amplified with your ear 3 feet away picking up the sound directly from the needle.
lets not forget that even many of the classic old Motown records are in fact by todays standards lo-fi and raw.
I will not get into slagging any bands records, however I personally find the lo-fi thing, especially on vocals is often little more 'REAL' or "RAW" than whatever that annoying voice effect "Usher" uses. (love in this club) Dare I say it can be gimmicky in the wrong hands, not that there is anything wrong with it. Some bands/ people can brilliantly pull it off and some can't.
Its dangerous territory to aim low. A good lo-fi sound for vocals (for me and not everybody admittedly) Is when it is just on that fine line and it is the perfromance that pushes into the red. Same goes for a guitar. Devil Dogs' "Saturday Night Fever" album by example a great raw recording to my personal tastes.
But this is just my opinion. And the label "garage rock" is quite wide it seems and there is room for everybody's taste from Rock and rollers to Rockers to Punk Rockers to the current Hipster interest in lo-fi.
It sort of like saying you like Motorhead and people assuming you also like Pantera. Or saying you like Joe Tex and people assuming your into 70's disco. Not that there is anything wrong with it.
It takes all kinds.
At the end of the day the only thing that will stick around is good rock and roll.
trying NOT to sound like Huey Lewis here but most likely failing so yeah "the heart of rock and roll is the beat" I said it. However to be clear I disagree on Mr. Lewis' other famous opinion song. it is NOT "Hip to be square".