This winter I bought a Squier Standard Strat, and it's a great guitar. I already had a mexican Fender Strat, but I found the Squier was too good a deal to pass up. It had pickups with Alnico magnets (like the US made strats) and the body was made of alder (also like the US strats). It also has a two point tremolo (again like the US strats do). These days I think the Squier Standards are made of agathis instead of alder, though.
After having had both guitars for a couple of months, my conlusion was that the playability of the Squier was better than the MIM (Made In Mexico). So was the sound of the guitar. I can even use the tremolo on the Squier without the guitar going out of tune. The guitar itself is also more ressonant than the MIM. In the end I sold the MIM and kept the Squier and I haven't looked back.
I have been playing for 17 years and have played in a bunch of different bands over the years. I would NOT hesitate to gig with this Squier. It's a great guitar and great value for the money. And I love the big headstock
My point is, don't let anyone tell you that Squier guitars are not good enough for gigging. I'm not claiming that all Squiers are better than the mexican built Fender Strats, but in this case the Squier was the better guitar. Maybe I got lucky with this particular strat. I don't know. I tried a couple of different ones, and I didn't encounter any dogs or lemons. I don't know how the cheaper models (such as the Affinity) stacks up, but I have heard good things about them as well.
On a side note, the new Squiers are supposed to be built after the same blueprints as the US made strats. This means that parts for the US made strats should fit the Squiers as well. Indeed I did buy a black pickguard (made to fit a US strat) for my Squier and it fit perfectly. I didn't have to redrill a single hole.
Finally, off course you won't get Gibson Les Paul sounds from a Squier Strat. Les Pauls have different scale lengths, are made of different woods (mahogani and maple), and they have two humbuckers instead of three single coils. However, you will get great Strat sounds from a Squier Strat.