I think with good luck a bit of "cheap" wood can sound great, and with bad luck a bit of "expensive" wood can sound shitee, so in that sense I can see what they're getting at. I'm sure there are a few flukey Squiers out there which, by sheer chance, sound better than 90% of US Fenders.
Plus, of course "good" guitar tone is totally subjective anyway...
But that's talking about the wood in existing guitars. If you're literally just buying raw timber, of a particular wood type, I'd hope you get what you pay for, most of the time. As Wez said, you're not going to get a decent sound from a bit of knotty, sappy B&Q softwood which hasn't even been dried properly (I assume, I haven't tried!).
And it's all a bit apples and oranges if you're comparing different woods as well as differently-priced woods.