You really have to define bargain basement guitars.
I think my selection of lower end guitars has been a wise choice. Personally I would not say they are better than the higher end that they imitate, but I think they compete well when you look at the price difference.
Here is how I rate mine:
Tele triple single - competes pretty well against a Fender MIM, but a good Fender MIM selection would win.
Squier Strat Deluxe: Completes very well against a Fender MIM, but loses ground when I compare it to my Fender Strat. However, I can spend a lot of time enjoying it because of what it can offer.
Epi Dot: I have a friend that has a Gibson 335 and a beautiful one at that and playing the two I noticed little difference. Again, the 335 was better to a degree, but not enough to jutify the cost.
Epi Wildkat: Still getting aquanted with it, but I guess it would be a poor mans Gretsch or maybe a Gibson Duane Eddy Signature model - so for now the jury is still out.
Fender American Strat Deluxe (Mod) - not a budget guitar, so can't really compare it, or at least I can't. Bought used, so I feel I got a budget price.
So when comparing my own collection to your statement, for the most part I would have to agree with you.