Record producer here. I can confirm that while audio fidelity is an important consideration to us, the gear we use ranges from insanely pricey to utter trash and both are equally valued. Everything is fair game. More often than not the gear that is compelling was specifically designed to impart sonic color and vibe. To distort the audio in a way that is pleasing. A ruler-flat frequency response is rarely what's called for. Most music is far more colored than people realize. Even the recordings that sound "natural".

Fidelity often comes second to simply sounding cool. Sources recorded on $6k microphones will often get overloaded, distorted, and then re-amped through a tin can because the sound is compelling. If it sounds good it is good.

In my experience the place that fidelity is most important is in the monitoring. An accurate listening environment is critical to ensure that the choices we're making will translate to listeners at home. If our listening environment is flawed we will have to fight much harder to realize our intentions.