Can regions be used in code which is good quality? Probably. I bet they are, in many cases. However, my personal experience leaves me very suspicious - I have seen regions almost exclusively misused. I'd say that I'm jaded, but still optimistic.
I can roughly divide the region-using code I've seen to date into three categories:
Poorly factored code: Most of the code that I've seen uses regions as a poor-man's factoring tool. For example, a class which has grown to the point where it makes sense to specialize it for different purposes might be instead split into separate regions, one for each purpose.
Code written using the wrong libraries, and sometimes the wrong language, for the problem domain Often, when a programmer is not using the right set of libraries for the problem domain, you'll see code becoming incredibly verbose - with lots of little helper functions which really don't belong (they probably belong in their own library).
Code written by students or recent graduates. Some programs and courses seem to try and inculcate students with the use of regions for all sorts of strange purposes. You'll see regions littering the source code to the point where the ratio of region tags to lines of code is in the range of 1:5 or worse.