Yes, Hobby Lobby has nice fabric. I've made quilts with it and they are great quilts. As with any fabric, from any store, I always do the 'hand' test... touching and feeling for quality. Our local Hancock's Fabrics has gotten so bad that most of the fabric fails the 'hand' test-- feels like cardboard. But I haven't run into that at Hobby Lobby. Their prices are really good, too. The quilting cottons are always 30% off. Go ahead and try some!
The only complaint I would have about Hobby Lobby's fabrics is that they keep the same prints forever, it seems like. You can go in once a year and find the same stuff in there. I wish they would rotate what they carry more often.