SS Glen, I must spread some more before giving you props, so here you go. I think alot of people fall under category 1. They throw on a preset with cans on and give up after 30 seconds of tweaking, try another patch, etc. Yeah, modelers aren't perfect, but...
I've recorded and mixed plenty of tunes on my PodXT, from clean to metal heavy that have sounded much better than tunes I've heard from people with awesome amps, whatever mic, and hours spent trying to get the tone right. On the other hand, there are certain tones I can't quite reach with my XT. Close, but not quite.
So... I'd recommend grabing a PodXT with the Model Packs installed, spend some good time tweaking (and borrowing) some killer patches for various tones (clean, clean lead, heavy, heavy lead, etc. etc.). Tweaking preferably done on monitor speakers (this goes for any modeler). Or, buy a ton of real gear, wake up the dead, and hopefully master the recording techniques to get it to sound the way you like.