Yes, a guitar like a Strat or a Tele is very simple to build, and even with good quality parts and electronics, there's no reason to pay crazy money.
As for the lower-end Squiers, I don't really like them. You can feel they have been together in a rush, and the parts are not of very good quality. And very often they arrive in the music shops with a poor setup and old strings. With a little TLC, a proper setup, new strings, they can be made very playable and well-sounding, but if you've played for a few years and you know good-quality guitars, then they still feel cheap. Which you may or not care about. You can of course upgrade the parts, but then you may just as well buy a better guitar in the first place (used).
I'm considering getting a cheap guitar to play around the house, and one brand that has caught my attention is Vintage. Their Strat models (V6 Reissued) look like fine guitars with good hardware (Wilkinson tremolo for instance). I've also played one, and the playability and sound were really good.