For a live band situation, you can't beat an amp with a stompbox in front of it -- and, of course, a wah! :)
But, seriously, for pubs and small clubs, I've found getting a decent sound with the minimum of fuss is highly desireable. A few bits of sturdy kit you can plug in and go with are what you want. Also, a good ol' distortion/overdrive pedal will likely survive getting dropping on the floor and beer spilled on it better than a V-amp or Pod or whatever.
For mucking about at home and recording stuff, that's where digital modelling stuff shines, IMO.