Interesting that you mention the Variax Al. In larger gigs, I use a Line6 for similar reasons.

The reason I mention that is horses for courses. The Line6 is a solid body and to be honest isn't much use for finger picking. In fact the only true electric I have that I feel I can pick on as well as any acoustic is my Gretsch Electromatic.

Now... In a pub singarond, I doubt any of my electrics are of use, and I use the Rainsong for the acoustic volume. (Ironic that the LR Baggs pickup is sublime...) and if the room is quietish, I pick. if it is noisy, I get the pleccy out.

I really don't see where this discussion is going other than comparing styles in general. Saying that one is better than the other is not only subjective, but is rather narrow too.