Wow - sorry to get into this discussion so late, but solving the pick-up vs. mic for your guitar equation has a lotta variables. I believe the solution has to be determined by the application.

Microphones, generally speaking, are the enemy on-stage. If you're in a concert environment; good stage, good sound equip, someone running the mix/eq, mics can almost always be used well, and are often preferable because you get a much more natural sound ... however, for clubs, loud or bad rooms, short sets, you can't beat the versatility and control of a good pick-up, and the reduced hastel of a pick-up is a great advantage. I use either or both, depending upon the environment.

I use a Fishman Matrix in one of my guitars, and a Fishman Rare Earth in another. Both are wonderful pick-ups and give me a sound with which I am happy enough - even though, when the opportunity present itself, I use a mic too. It seems to me most good vocal mics are also good guitar mics.

It is my understanding that condensor mics, add a significant problem with feedback, and therefore EQ. That is to say, under ideal pro sound stage circumstances, they do not offer much problem, but in the club/pub/festival world, they may add to your problems. I have no personal experience with condensor mics in these live stage environments, so I am just passing what I've heard, and what makes sense. I know, though, that many players install condensor mics inside their guitars (sometimes in combination with a pick-up like the Fisaman Blender) - and this may help reduce the feedback problems.

In short, if I am only going to have one or the other (a pick-up or a mic) - I would use a good pick-up, because of its versatility. Besides good sound stages will typically have their own mics, and won't rely on me supplying them.