Ok, so today, I got to stop by my favorite "mom & pop" guitar store, and handle both. Before I touched either, I could see the difference. After handling them, I see where the money went. The fit and finish of the Fender vs the Squier was like the difference between a Ruth's Chris Sirloin and a Big Mac. Simply no comparison. I could saw wood with either edge of the Squier neck. (Fixable, I know.) But even the finish and quality of the hardware was obvious. One of the Fender Mustang's I looked at was $1200. And it looked, and felt it.
BTW, (in reference to ehdwuld's comment), it was a strange orange color, with the thin-thick-thin racing stripe. Ala, old Toronado's or Cyclone's. I kick myself for not taking a pic. Maybe I'll go back tomorrow.
So . . . given my skill level, and budget, I'll probably do the Squier. I can do the fret dressing and electronics, and my luthier friend can do the final setup. But It will never look, or feel, like the Fender.
If I win a scratch-off, this may change.