Oh yes you can.
Tape machines require constant maintenance and regular and expensive servicing, and the people who can do the work are getting very hard to find.
I'm on the opposite end of the spectrum- I would not consider Audacity because it is too simple.
I earn my living by teaching studio recording, so I consider "industry standard" to be the criterion for choice of software and hardware.
At home I use an Eight bus analogue mixer with the group outputs running through an M Audio Delta 1010 into ProTools 7 on a dual 4.2 gHz PC.
There is a Joe Meek optical compressor on the mic input to the desk, and a passive DI box for guitar. Mics include SM57, AKG3000, and JM47, plus more expensive ones that I can borrow.
I also use a CME keyboard to control MIDI, with the sounds coming mostly from Reason, though I still occasionally use Roland D110 and EMU Orchestral Outboard Synths.
If I were starting from scratch now though, I'd probably go for a Mac,
a good modern automated interface, like the Control 24 and Logic 8.
Cheers
Dave