The guitars themselves aren't bad at all. It's the lack of attention to fine details and small parts that gives them a bad name.
One of my coworkers at the guitar shop I work at, for fun, takes Squier basses and guitars, puts in all new hardware and electronics, fixes up the details (neck edges, nut, tuners, etc), relics them, and puts a Fender decal on the headstock.
He then gives them to broke musician friends so they have cool instruments to fuck around with that play great. Occasionally he'll sell one as a "modified Squier" for $500-700 (he puts great electronics and many hours into each one).
Eventually when I have the knowledge necessary, and like $400 to burn, I'll do one.