Personally I think so, but it also depends on the brand just like with regular toilet paper.  I use the Seventh Generation brand.  For your money you get the most durable toilet paper and it feels no different at all.  Hope this helps!

I have used the 7th generation toilet paper and found it to be much softer than the non-recycled 1-ply.  The drawback for me was that we went through it a lot faster, about 4 rolls per week vs 1 roll per 2 weeks with our regular stuff.

Well, though some people do think they have the same softness, some people definitely disagree. One explanation for the difference in softness has to do with the fact that the texture of the starting fibers, whether virgin or recycled, influences the feel of the product. Since the fibers in paper shorten each time that they are recycled, making recycled toilet paper can also be less strong. "To compensate for this, some manufacturers use resins or mechanical means that help the recycled fibers stick together better." Making paper stronger has a negative effect, however, since it makes it stiffer. 

I read something on hubpages.com about a women who commented about the use of recycled toilet paper. Her and her kids said that it felt "scratchy" and it took more toilet paper to get the job done. But it's definately a good change if you want to help out the environment.