Having done both I think it is money vs. personal preference.
The only real advantage hardware has is stability for live performance and software’s is price. While plenty of people rely on it a MIDI controller and software has never = hardware (for me).
I also think the Gearslutz mentality has ruined a lot of people’s ideas about what a hardware setup can/has to be. You don’t have to have a room full of gear you need to dust. I don’t mind saying I accumulated a lot of debt getting as close to that as I could and while I had a lot of fun dicking around it was the worst music I ever made in my life.
So many people would be really, really happy–I think–owning a couple essential pieces of gear really made for the kind of music they make. So much has audio over USB now you hardly need to invest in an audio interface even. I can think of three people including myself from the hardware thread right now that are trying to figure out a minimal hardware setup that will be fun and efficient.
Frankly, my experience has taught me that the average hobby electronic musician is going to make better and more music using software.
The top reason I like hardware is the same reason the dude down the street owns a couple guitars and amps. We just like to fiddle around on the instruments that make our favorite music. If I’m going to make something for people to download and play in a set, you better bet your ass that is a DAW-heavy track if I’m making it.