I'm looking to begin doing small boxes and freehand work and not certain
if I need to step up the quality of my bits or not. The R/HF stuff
cuts wood. Will I really see a noticeable and usable difference in the
cut surfaces in exchange for the higher bit price? Will I gain enough in
wear to overcome the price differential? I'm looking to buy 'quality',
not bragging rights.

In my experience, MLCS bits do cut better than the few no-name Chinese
bits I've used (probably equivalent to HF?). I think they're a good
value, especially if you only need one bit and you'd be paying for
shipping from another company. I have probably 25 of their bits (a 15-
pc set plus several individuals), and have only had a problem with
one: I broke a 1/4" straight bit, while trying to cut too deep (3/8"
in one pass). MLCS promptly replaced it, even though it was arguably
my fault. Overall, I think they're a very good value if you're not
going to be using a single bit very frequently, and I've been very
impressed with their customer service.
However, I think that Infinity, Lee Valley, maybe Freud, (and of
course Whiteside, Amana, CMT, etc.) represent another jump in quality
past MLCS, and some of these can be had for reasonable prices.
(Specifically, keep an eye on Infinity's closeouts). I usually pay
the extra for one of these bits if I know I'm going to be using it a
lot. I think the MLCS cut quality when new is almost equal to the
more expensive bits, but they don't seem to last as long.
(As you can tell, this is merely the opinion of a novice hobbyist
woodworker, so take it for what it's worth...)
Hope the comparisons and experiences are helpful,
Andy