Farview, he really isn't running a for real "for hire" studio like you do, and like I have in the past. He probably has never had the burden to deal with, and thus will just continue to argue his weak point on this subject.
I totally agree with you (as I stated earlier)! Most here have no idea how LITTLE studio time $500 buys you, even in a local small studio! Couple that with a band that is FAR from ready to record, well, what kind of product can you expect from the studio?
I listened to the other demo's that studio had on it's myspace page. Really, the engineer(s?) are quite good, and VERY capable, and definately worth the meager money they charge. If I was looking for a studio in their price range, and was in their area, I would seriously consider using them for sure!
There are few around here who I would even waste my time working with, even if they were offering to work for free! I find it amazing that so many marginally talented engineers can so easily blast this product, like they can do better or something (under the same circumstances).
Oh well..........