probably depends on the amp, the guitar, the mic, and the person listening to it
If you are using a crappy guitar with a crappy amp, recorded using a crappy mic and listened by someone who can't tell the difference between a guitar and a banjo....then yes.
But if you're comparing the Pod to a kick ass guitar with a kick ass amp listened to by someone who knows his guitars.....then I doubt it.
The Pod is there as an alternative. If you like it's sound, then go for it. If you don't have the money to afford a decent amp, then go for it. If your ears can't tell the difference...then go for it!