A great engineer will make the MOST of any given piece of gear. But he or she will still be limited by the limitations of the gear.
Put a great driver in a slow car, he will make that slow car go as fast as it possibly can around the track, but he still won't win the race.
Take a fellow like George Massenburg, he would never get anywhere near his audio production goals if all he had was a stack of Behringers for instance. He would make the very best use of the gear, and a musical production could be yielded, but the end fidelity would be WAY below what it could have been if true "high-end" gear was being used.
I've actually heard / witnessed several "professional" albums (by known artists) that had been recorded / produced by talented people but using "low-end" gear... and the final product indeed SOUNDS that way... the music and performance itself is good, but the fidelity and overall audio quality is HORRIBLE. I will not mention names here to protect the guilty.
To make a truly stellar recording / production, you need serious skills / experience, AND excellent top-notch gear.... need it all.
Though, I suppose with some genres maybe you an get away with "low-fidelity" gear, but this is less common. Chances are, with MOST genres, if your goal is to yield a truly gripping, exciting, stellar production, you WILL need to be using "high-end" gear.
Note to the OP... some folks will claim that, for a novice, it is better to use low-end gear because it then forces you to try harder to yield a great end result etc. But I totally disagree with that. Low-end gear can only be looked at as a stumbling block that slows you down, novice or otherwise. It will just cause frustration and you'll waste time. This would be like giving cheap, crappy tools to a novice carpenter... it will only cause you to make a mess, you will NOT get better at carpentry by using cheap, crappy tools. Same with music.
In my opinion, if you can afford it, get your hands on GOOD gear and spend a lot of time working with it, experimenting, making recordings, etc... that's how you'll get good. Your ears will soon develop to appreciate the good gear and what it can do, otherwise you're just spinning your wheels so to speak. The most important aspect to improving as a recordist is developing your ears, and your ears surely are not going to develop very fast if you are using low-end gear all the time. You need to be listening to and working with "real-deal" equipment.
That's my opinon anyway.