In my experience if you care about food quality you must cook for yourself. Catered food is always cheap, mass produced, and lacks taste and nutrition.
It depends. Local caterers can be good. This is a good option for people who are not great cooks. But yes, if you order catering from a run of the mill place it can be average. Another option is to hire a chef.
It’s also cozier and you don’t feel pressure of having to get going after a couple of hours —any kids can find things to do around the house, be it gaming, TV, running, going off to a corner, whatever. Adults can group into convos of interest, etc.
If people are worried about food quality (rarely is food the focus, but if it were that can be catered).