Some things to consider....
....(in the context of a stand-alone digital unit like Roland/Fostex/or Yamaha has vs. a computer)
Hardware crashes less than a computer (unles, apparently you run a Mac

) and hardware is generally more portable than a computer.
Software can give a stagering amount of options as far as platforms, effects, etc.
And upgrades can be easier and more comprehensive with software....and you can keep your same computer.
But most of the hardware units have ACTUALL faders. And although most buttons will serve multiple functions, they are real, tactile, realtime controllers.....much less suceptible to processing or driver glitches that seem to happen during the "killer take" on a computer.
You need to get a midi or usb controller with software.
BUT.....the editing is sooooooo much easier on a computer.
Just the size of the screen alone and the resolution.
256 colors makes a big easy to see difference over (maybe) 3 colors on a 2" x 5" LCD.
I have a Roland VS880Vx and I use a bunch of software like Acid and Sound Forge...and most recently Cool Edit Pro.
I tend to track on the 880 and edit on the computer (which BTW is pretty outdated, though technically I built it only last year).
The 880 being portable is nice. Being able to scoot over to buddy's house with the 880 and some mics and then bring some tracks back and clean 'em up and add to them on the computer is really nice.
I know my room sucks acoustically.....but my friend's living room is killer and my moms kitchen is great , so if I can go where the sound is good, that suits me.
Besides, I cant really fit a drumset in my basement anywho.
Portablity is flexible.
Flexible is fun.....and I'm not a pro so ......fun is where its at.
It might depend on exactly what you want to do.
Computers are great for creating beats and for sequencing.
I tell ya though......I really like tape still.
-mike