I think several peope have hit on a key issue of client perception - eye candy involves more than hardware with lots of LED's and knobs.
The studio environment also sets the tone. Is there a decent vocal booth (vs. moving blankets). Is there Aurolex or other treatment on the walls - or old egg crates. Does the control room look like a studio - or is it a corner of a basement that the client has to walk past dirty laundry.
I think it would be relatively easy to sell a client on the fact that in todays world of technology you can have a studio in a computer with plenty of very good software processing, mixing capabilities, etc. If you present that information effectively, you should be able to convince any client to take the time to listen to a couple of mixes (at which point the music will speak for itself).
However, if the recording environment is not comfortable - all the software (or hardware) may not really make a difference.
If I pay mony to someone - I expect them to be a professional at whatever it is they do and I expect them to present themselves in at least a semi professional manner. If I have to cram into their bedroom and sit on their unmade bed -or walk past a pile of dirty laudry to get at the control room (well at that point I'm already having doubts) - now maybe the mix I hear will make me believe that they can get a good sound - but that does not mean I would feel comfortable spending time recording while sitting next to dirty laundry.
I have been in home studios that were filthy (cat crap in the "live room", the afore mentioned dirty landry, a "vocal booth" in a closet, standing in the middle of a pile of clothing, etc. etc. - not an environment that brings out the best in an artist
That all being said, I would not buy hardware unless I would use it (although I think the suggestion to use some decent mic pres may be a valid use of hardware).