A Telecaster can play anything, be it country or jazz. Danny Gatton played numerous styles, and got many many different tones from his Tele(s).
A good player can make any guitar sound good. That is my eventual goal, and at the moment I'd say I'm far from it, others may disagree.
A good player can make that Squier sound like a $35k Gibson, should he have good hands, know how to manipulate the rig (same rig as the guy in the video plays), and "squeeze the strings" right. Most do not understand this, and it's not an easy principle to convey-especially over a message board where every person knows everything. I've had this conversation with others on many sites, and while most disagree, some agree though reluctantly.