Is there a big difference in using acoustic tiles vs sound blankets in the setting up of a studio?
i assume that the fundamental question at here is a question of room treatment?

good room treatment goes way beyond just "acoustic tiles", to treat a room effectively you will need bass-traps in the corners, broadband absorbers of some sort (whether they are foam tiles or large mineral-fiber panels) at strategic locations along the walls and ceiling.

and yes, proper room treatment is in a world beyond "sound-blankets" (i assume you mean just hanging up normal blankets on the walls, which is not effective at all).

for more info on room treatment, visit the John L Sayers forum and have a read: