The short answer is no.
I was at a local venue show recently that was about what you'd expect from the underground music scene; a few less-than-known pop-punk bands trying to sound like Hot Chelle Rae, a few gems getting pushed aside by unfairly short set times, and a couple of headliner touring bands that came all the way from East Jesus Nowhere, California.
Now, nobody loves the underground music scene more than me. In fact, it's because I love it so much that I choose to tear it to pieces.
(Let's just get that out of the way before we continue)
The thing that bothers me about local venues (besides the obvious that they're closing rapidly), isn't in the rising costs of tickets (from $5-$7 in 2005, to almost $15 now), or the disorganization and lack of respect that show promoters often give to the fans coming to see bands play, but in the equipment being used by bands.
In a room filled with maybe 30 people, is it really necessary to have these 1200 watt monster stack amplifiers cranked up to 11? Probably not.
In the same way that putting too much sugar and milk into your coffee to make it palatable (if you don't like the taste of coffee, don't drink it), bands put a large amount of leg work into building their kits to make themselves sound professional.
Not that I'm trying to attach a stigma to trying to sound professional or anything. Of course bands want to sound like they're already ahead of the game. You never know who's waiting in the audience listening for the next big hit.
The thing is, when patrons, including myself, walk out of a bar after a 30 minute set feeling like their eardrums got blown out, and more disoriented than they do after a few pints of Guinness, there's a bit of a problem.
Good artists don't need to flaunt their presence with fancy effects and sets that are louder than an F-16 engine.
Good bands can get up there with 30 watts or less and still put on a good show for the small crowds that gather in the even tighter spaces. In short: Know your venues.
If you're playing bamboozle, or a crowd of more than 100+ people, then definitely go for it, but you would be surprised how far you can go with the most minimal equipment. In this case quality is always a notch above quantity.