Yes, the playback sounds just as bad. As an example, on an XP-30, in Patch mode, go to the C bank and select patch 079 (Jet Str Ens) and then press Performance + Patch and select C079 as part 1 in Performance mode and compare the difference in sound. The resulting sound isn't bad in itself, but definitely not what we start off with.
As far as recording, I'm not sure if I'm even going about this the right way, but this is the only way I can hear anything at all when I play it back.