I went from ITB to OTB (Hybrid), then back to ITB and now OTB (Hybrid) again.
For good 15 years, I was only in ITB, dreaming about getting all those hardware synths and processors at the beginning of my journey. When finally I was able to afford the hardware, I bought stuff like Roland JV1080, Roland JP-08 Boutique... But after some time, I concluded that I couldn't justify the inconvenience of working with hardware. Some of the synths have the advantage of sound quality but working with, e.g. JV1080, and its tiny screen controlled with just 5 buttons or tiny knobs in JP-08. The comfort of working ITB won, and I sold most of the hardware. I just kept JV1080 for special occasions (music that requires general midi and similar sounds). So for the next few years, I was ITB again, and I swore that OTB is too much of an inconvenience these days.
As my GAS for software almost died completely (by 20 years, I collected tons of plugins of any kind), and I felt tired of looking at the screen every day, I started to look for alternatives again. Then I came across Behringer Clone Wars. When I heard their Odyssey, I fell into love at first sight. This time sonic advantage was huge over plugins, and what's more important, controls were comfortable: fader per parameter, big enough for comfortable control... Simply a fun device to play with. I bought it, then I bought effect pedals because I can't 'do synth' without delay and reverb
This time it's a totally different experience, and I can easily justify the inconvenience of working with hardware. I'm simply not using hardware for sound design for games tasks, because those require constant changes and rendering to show it to clients or teammates, only for music. Now Model D is on its way, and I'm planning to get polysynth, more pedals (Strymon is yummy) and one solid compressor next (no rush here, though).
So to summarize, for me, hardware must have a huge sonic and comfort advantage over ITB to justify its use. Not every device is really convenient over tweaking parameters with a mouse or midi controller (PITA in Cubase). Hybrid is the way to go for me. I'll never go fully OTB. I may go back to full ITB if it will be the only option. Who knows what the future holds for us, after all.
Ps. stuff like recording to tape etc., is absolutely NO for me. I didn't work with big tapes, but I did similar tasks with cassettes (cutting, glueing, etc.). Hell no. Recording in DAW is so much easier it's not even a competition.
Beware! The software discussed in this topic has unacceptable aliasing at -386dBTP but it can be fixed by changing the sample rate to 12Bit