That's the beauty of forums, we can agree to disagree. And you are right that many people cannot tell the difference between full frame vs crop. I would tend to shy away from a broad generalization though. There are people on here that can tell the difference. Does it matter, it does not.
I wouldn't say that a "better" camera will take better photos. Using my other example above, a consumer grade camera in the hands of someone who knows what they are doing will outshoot a pro level dslr in the hands of someone just using full auto. As I mentioned above, I won't be upgrading for a couple years because IMO cameras haven't really advanced to where I will spend money on something that is barely better than what I've been using for the last 6 years. Only advance has been HD video which I really don't have a need for.
I think the general theme here is to learn the camera as that will lead to better photography. I think the higher end dslr's are only worth it once you've "mastered" the basics and have moved on to being able to apply camera settings creatively to achieve the photo your after.
Again, I'm not trying to argue, just trying to show people that just like reef keeping, there is more than one way to skin a cat in photography. Just get what you can afford without going overboard, and what will suit your needs.
Joe has given great advice and I would certainly follow it because he is showing the value of only buying what you need rather than buying something that's "pro" level. When I made the jump from film to dslr, I honestly couldn't afford a "pro" level camera. I bought what I could afford and have been happy with it. Now that I can afford one, I still have yet to jump and buy one. I will once I find something that adds functionality and value compared to what I'm currently using.