Short yet to the point video of TAXI’s Michael Laskow about the quality of demos. Basically the message is that a badly produced great song is better than a great-sounding average one. Duh!
The only thing he does not mention is that these days, the quality of demos keeps going up all the time. Sure, some people can ear a song regardless of production, but most can’t. Even when I’m playing a song to fellow songwriters, I’m always surprised at how much they want to be impressed with the production. Everybody wants to ear a record.
Be safe: make the production as good as possible. No one will turn down your song for being too well recorded.