Sorry, couldn't resist that
But seriously, as software is very capable for making great music and the average listener (you know, the ones you make your music for) is totally unaware of what was used to make the music, the cost of hardware including the cost of maintenance has lost the battle against the cost effectiveness, multi-instance use, workflow efficiency (total recall) and space efficiency of software. It doesn't matter if software doesn't sound exactly like hardware, it matters if it can sound like something my tracks need. And it does.
On the other hand, if you need the tactile interaction, hardware is still king (but I can get pretty close with mapping MIDI-controllers to software). So it might fit your way of working better, or inspire you on a level that software doesn't. Which is still a very subjective point and has little to do with the sounds that hardware or software can make.
You can't debate if either hardware or software is better, only if it suits YOU better, which is a non-issue as that in itself is a personal perception point and therefore not open to debate. Apart from that it is just mental masturbation (on both sides of the argument).
