Good topic!
I guess you can't count out trying to get that classic garage sound like you hear on the pebbles/back from the grave comps. Problem is that using two shitty microphones into a tape deck isn't going to give you that sound. Even though a lot of it was recorded using reel to reel two tracks the engineers had knowledge of mic placement, sound levels etc and more importantly how to mix to two tracks.
And I guess the other side of the coin is necessity. Some bands simply can't afford to record and just try to do the best with what they have. That's the way I've always had to operate. The cost of recording is prohibitive. I've never used a professional studio and not because I didn't want to, it's because eating and paying the rent are higher on my list of priorities. I will say that I have never been happy with anything that I have recorded, does that make me sad? No, life is full of disappointment's; deal with it.
Also you're hardly going to find a trash band going into a 48 channel pro tools studio to record their next album perfectly and then spends days or weeks processing it down with digital effects to make it lo-fi. That just wouldn't make sense for that type of band, it just wouldn't fit with the aesthetic of a trash band to my mind.