I think a lot of musicians think they need better gear. If what you have is playable then you can improve even if the sound is not optimal. The player can make a big difference. I've heard others play my guitar and it can sound totally different. A lot of great players started on really bad gear as it was all they could afford then, but they persisted and improved. I think that these days even the cheap instruments are pretty good.
The important thing is to play.
You're correct. The important thing is to play. People use bad gears as excuse for not improving..