Well...
I use Sonar, not Cubase, but... I prefer the software route because it's way more flexible in that you can get just about any plug-in made to use with it. With the VS studios you are limited to what expansion cards are made specifically for it (although i think some nice ones have been made for it). Also, if you already have a computer that is beefy enough for recording, going the software route will be less expensive, and you could spend extra money on mics, pres, interface, monitors, etc...
Now...on the flip-side, if portability is an issue and you don't have a laptop, then a VS studio might be the ticket. I personally use Sonar with a dell laptop (Pentium-M 2.0GHz, 512MB RAM) with a presonus firepod, and it's great for me. I'm not as comfortable on the stand-alone units as they seem cumbersome and unflexible to me, but I FIRST LEARNED on software with Pro-Audio 9, so it makes sense that it is the route that I'm comfortable with. If you're comfortable with stand-alone recorders and haven't used software much, then that may be the route to go as well.
With all this rambling, i'm not sure if i even answered your question. But...several things to consider before diving into either route.