Personally, teles aren't my thing. The style of the guitar just never appealed to me. As a kid, I always lusted for a strat.
However, I have one very positive lasting impression of a tele - I watched my friend's band play in a bar about 12 years ago. They had a fantast guitar player. They played everything from Van Halen, Kiss, Rush, Stone Temple Pilots, Pink Floyd...you name it! He ripped it up with this tele!
I have no idea if it was stock or if it had single coil or humbuckers in it, but he shredded with this guitar.
So I'd say it's capable of more than just what you typically see it used for in country and blues. Andy Summers of the Police played one - not your typical use either.