Well, lets port this idea over to synths, which I trigger from guitar. Korg, Yamaha and Roland's best hardware synths cannot compete at all with a good software synth. What they have is control- lots of knobs, ribbons, infa-red...all kinds of control. But the sounds? Even if a synth has 128mb of waveforms, it can't compete with 1 piano that is 50*gigs* of samples for 1 sound. Hardware synth makers are losing a fortune- and the times are a-changin.
This is why huge touring bands have 1 master controller, and a laptop.
Over to guitar, outside of the 'plug n play' of something like the POD, modelers can get really deep- you can spend hours with routings, outputs, different combinations of all sorts of things. Most guitarists don't want this. They want to sound good. They don't care. A few like endlessly tweaking, but there is a reason why the LP and Strat are still popular- both easy and sound good.
A few guitar programs like Amplitube, sound great. Companies like Lexicon are putting all R&D into software effects. Eventide will do the same- we will see an Ultra-Harmonizer, the $8k piece of hardware, inside a VST plugin with 4 years. It cost a lot more to make hardware- software is a lot cheaper. I'd rather see the R&D go into any configurable/routable preamp that is purely software. A controller USBs (or ethernet or firewires) to a laptop, which sends the sound to an audio interface then to the PA. No, its not like an amp and pedals, but hey, most guitarists dont understand MIDI either and its almost 30 years old.
How far away is Duncan from making a 'blank' pickup that you can download 'pickup models' to?