I think it depends on your own taste and application. Plenty of artists out there use ONLY analog, or ONLY digital and plenty use both.
My personal opinion is that digital is more convenient - just look at the POD XTL or other similar processors. You get a perfectly usable sound that is easily portable for gigs/sessions/jams. It might sound a little sterile, but most average music listeners won't hear it. If you're recording, you can always throw some reverb into the mix.
But having said that, I do prefer analog. The reason is that digital IS processed. No matter how many times you sample the analog wave, it's still a sample. That would be fine if the guitar produced just one sine wave for each tone, but the complexity of the string being hit by a pick or fingers is that there are harmonics and other imperfections so that you don't get a single sine wave. The fact is that digital cannot reproduce analog exactly, and it still is a sample of a very complex series of sine waves.