a freak? well, i can't attest to that

, but i definitely hear where you're coming from.
the band i'm in is a rock band (and i play drums, guitar and mandolin in said band), and we would prolly be labelled as a jam band, since we're not afraid to rock out a 10+ minute tune. we don't really like the idea of being called a "jam band", but hey, if it gives someone a frame of reference as to what to expect....
....anyway, we're ALL ABOUT the "live performance" aspect of our music. that's what we do best and our recordings tend to reflect that. but we DO want them to sound as good as possible. we DO record our "studio" stuff to a click track and do overdubs, etc. does the emotion and feeling get lost in it? no. why not? b/c we're careful about that sort of thing and make sure it's NOT lost.
my personal, side-project stuff, though, is all about exploration and experimentation. i play a variety of instruments and am another one of those "one man band" things. there's NO WAY i could ever perform these songs on my own in public--at least, not in the way they go down on cd--i'd need a band, and i don't want a band. so from that standpoint, the "cd is an advertisement for the live performance" perspective that you have is something that i couldn't possibly achieve.
neither my band nor my personal stuff will ever see a major label, indie label, or national release, although it's already seen the radio here in Charlottesville. but that doesn't mean that i don't have "quality" in mind in both cases. nothing quite like hearing one of your tunes or mixes on the radio.
it's all about your frame of reference. if you want your recordings to have that "live, recorded in one room in one take with a shitty drummer and no overdubs" vibe, then by all means go for it. in some genres (punk especially), that's expected.....and a polished, Nashville-sounding album wouldn't fly in the punk world. in some genres (say, pop country), the low-fi punk sound wouldn't even get the time of day. you really have to mix to your genre to some extent, and when you record a lot of different music, you have to keep an open mind.
although, really, if i were playing with a shitty drummer.....he wouldn't get embraced....he'd get my boot in his ass and would be looking for a new gig! life's too short to play with shitty drummers (let alone cokehead guitarists).
cheers,
wade