I use Nuendo recording software to track and mix. I have a Yamaha O1V digital mixer with motorized faders to control the "fader's" in Nuendo and prepare the mix animation. This is in effect a Control Surface. It interfaces with the software via MMC, or Midi Machine Control. It works seamlessly, and flawlessly!
I prefer to get the sound I want for each track BEFORE it hits the hard drive, and this is accomplished with proper mic selection, placement, and a minimal amount of outboard gear. If I absolutely HAVE to use plug-ins, I will, but I do so in a very limited way for 2 reasons:
1.) I generally don't like the sound of plug-ins vs. quality outboard gear.
2.) My outboard gear selection for signal processing is very limited.
Once you have the sound you're after, there's little reason to process it post recording. In my findings, the less processing I have to do to a signal after its recorded, the better. However, at final mixdown, some processing is inevitable. I find I am usually able to limit that to slight compression of certain tracks. Right now, I am forced to do that within the digital domain.
You ask is the general public getting used to the digital sound?
Defining that "digital sound" could lead to a host of debates.
I think what the general public is not only used to, but somewhat demands, particularly in pop music, is an extremely detailed, almost overly hyped high end contrasted against a gut wrentching bass. Achieving that, either through DAW or Analog systems doesn't matter to the lay-listener.