There's nothing wrong with electric guitars - or any other instrument - as an instrument. The question is, can you still hear the song? - and I don't just mean in the sense of being able to make out the words. If the arrangement allows listeners to go home with the tune and the words in their heads, the job's a good 'un. If you're playing the same rock'n'roll/ambient chillout/death metal/brass-driven knees-up music you would have played anyway, only with some traditional lyrics secreted about its person, I'm not so keen - because that way you're not really introducing anyone to the song.