Would you rather have a room or a studio kit?

I think a tuned/treated room would make more of a difference in production quality, and give your studio a bit more value and professionalism when promoting. A decent studio kit would be something I'd have after the room, no point having a good kit to record if the room you're doing it in doesn't sound good.
 
I actually have no idea if I have a good room or not, because I have yet to get a decent set in to test it. My living room is all vaulted ceilings with oak flooring and I haven't gotten a chance to give that a listen.

the challenge with building the room I'm describing is the limitation of 7' ceilings, and there isn't anything I can do about that. If my living room sounds good though...

Tough decisions.