IME, undeniably and in many ways. For example...
I started out with a DIY distortion and the one built-in into my Roland Cube 60. Pretty shitty circuits and I never had the more dynamic pedals or modelers of nowadays before the Axe-Fx. So what I wondered about forever is how you can have some notes sound driven, and (power) chords to not be that saturated and have note separation.
Maybe a good example is Hold the Line where I want the single lines (verses) to be somewhat driven/saturated but I don't want the power chords to be that saturated. So I would be thinking if I should make a pedal control the drive and why the pros didn't seem to need that??
IOW, a lot of time is lost when not knowing how a tube amp (at volume) plays... Same for legato that can come "so easy" at the right settings/volume and you have no idea how they are doing that when you're young on shitty gear...
"On one hand" (LOL) I guess it develops your muscles and only much later you discover that in a sense you don't necessarily need such powers...
It took me too much time to notice many pros are hardly touching the strings (and why), and that I was playing too tensely.
When you then finally experience a great amp (model), you can put those muscles to better use and almost instantly become better.
Another effect that I was clueless about in my youth was a compressor. This too can make you sound pro with less muscle effort. Not knowing that just wastes time worrying how bad you are. Knowing the right tools will give you more confidence.
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A perfect neck and perfectly set up guitar is a HUGE difference to what I started out with... (not that I have any of these, but I have clues now and have felt what a difference tiny adjustments can make)
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A "funny experience" I had a few days ago when exploring Axe-Fx presets was a preset that somehow improved my vibrato (which is hugely important to me). There are situations/presets where your slightest finger movement is tracked, which can be bad if you don't have the perfect vibrato in that moment. That one preset seemed to somehow correct it or make me move differently (or were the delays hiding what was really happening?).
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Strings are gear too. I'm discovering a little late that I have probably always fought strings that are too heavy for me, which can hurt my vibrato. I discovered that I ideally want to be tuned to Eb on a short scale neck, or in other cases should try a 008/0085 set. It makes beautiful vibrato much easier and is also the only way I can do easy first-finger bends and am not fearing certain other bends. Luckily I'm not one that feels you should play 010 sets. I suspect I will be much better with 008. (I actually caught on 30 years ago but never acted on it...)
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Crazy good sound may not make you better so much, but you and others may perceive you to be to a worthwhile extent.
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OTOH, little or nothing from all of this helps my bad pocket...
