I'll swear by PC software reverbs. Distortion should be done by pedals. Modulation effects (Flanger, Chorus, Phaser) are pretty good either way. Like you said there are some effects you can't get out of a pedal. I use waves myself and I won't record anything without using something from the rverb patch. IT's a preference thing I SUPpose. If one was really better than the other than everyone would just do that.