I too have a Variax and a POD X3 Live! that have never given me a problem in 6 years. Guitar players that visit my studio are always impressed with the capabilities. I don't see the "purist" guitar players giving up their Strats or LPs or their tube amps or pedals anymore than I see true Hammond and Rhodes purists using substitutes instead, but they do have their place. As a keyboard player who dabbles in guitar (and technology), I got them because I wanted to cover as many bases as possible. Kinda like my Kronos does.
I see Yamaha buying Line 6 as a good thing as Yamaha will be able to pour more resources into Line 6 R&D. It should be amazing watching what they come up with AND seeing that technology trickle down into Cubase. If you don't know, they partnered with Bogner and developed a real tube amp a few years back and have developed a simple (idiot-proof) PA system that you can run from your iPad on stage or from the audience. Worth watching the videos on YouTube if you haven't seen it yet.