Yes, both Steinberg and ableton, ceremony does it too, convert audio to midi. I think Steinberg does only melodic stuff, while the others can do harmony.
@Swamptone, you can use Roland live with confidence as long as you set it to accommodate your playing style and the instrument at use.
I have a gk setting on the vg99 where pickup sensitivity is set to zero, so it works well. Zero is a starting point, never go past 5 or you will head into trouble, the sound from the resonating string will make the others vibrate and it will be picked up, hence the erroneous playing. So I have two settings, one for guitar the other for MIDI. It works.
Check the video tutorials from Roland.ca on YouTube. They restored my faith on the Roland gear.