Yes...quite frequently. In fact part of my "job" is to supply reviews of community theatre productions to the local papers.
The very best productions can sometimes outshine a professional staging. A few years ago one of our community theatre groups did FALSETTOS. It just happened that the people in the cast and the others behind the scenes all loved this show so much and put so much effort and enthusiasm into it that, as I said to the producer, they could move the production intact to a a downtown theatre and charge full price and no one would know the difference.
One group in Toronto specializes in doing older classics that have not been done here at all. They gave us the Canadian premiere of ALLEGRO a few years ago in a production that was attended by members of the R&H organization. (The production is briefly mentioned in the liner notes for the new CD.) Last Feb they gave us the first ever Toronto production of Cole Porter;s SILK STOCKING and this season they are doing the Richard Rodgers musical REX.
Community theatre has been tainted by some badly played and misguidedly directed productions. Directors are sometimes musical theatre queens who think they know better than the original creators and impose their own unique concepts on shows. Others stick to the original scripts so slavishly that they do intermediate scenes (originally intended to cover scene changes) when they are no longer necessary. The best directors know how to streamline older shows, how to keep the pacing steady and what their audiences will buy.
Ultimately the success or failure of community productions hinges entirely on the enthusiasm of the casts. One local group did 42ND STREET a few years ago and you could tell their hearts just weren't in it. It was a deadly dull production where even in the big chorus numbers you could not hear the singers. Yet I have seen them do other musicals where the energy level was through the roof.
It is a shame that the really bad ones have tainted the reputation of community theatre in general.
Cast albums are NOT "soundtracks."
Live theatre does not use a "soundtrack." If it did, it wouldn't be live theatre!
I host a weekly one-hour radio program featuring cast album selections as well as songs by cabaret, jazz and theatre artists. The program, FRONT ROW CENTRE is heard Sundays 9 to 10 am and also Saturdays from 8 to 9 am (eastern times) on www.proudfm.com