I feel it important to note that while in the case of bolt-on builds the body wood certainly need not be your biggest concern, there still is appreciable difference in sound between a body made of seven pieces of agathis glued together (Squier) and one made of a single piece of ash (some American Fenders, G&L, Warmoth, Musikraft, etc). Also, with a set neck guitar, not only can you really hear more of a difference between body woods but you can even really feel the difference, too. For neck-through, it's the neck/body center wood that dominates, again.
So in this case, yes, a Squier body or other cheap body may do the job just fine. I just don't think it's sensible to state that that will be the case for any and all guitars.