I think the 505/506 series were the first with any kind of 'modern' processing. Still not 'amp modelling' yet, but enough oomph in the chip to not sound too casio! Its all good, i think it's got its own character - i'd agree that most of the drives are worse than useless, i always found myself using 'blues' or 'overdrive' exclusively as a guitar player. It's also clearly voiced to get the best out of rubbish output equipment, so as a play-along tool/toy into a mixer with my computer and out to PC speakers, it sounds good enough compared to mp3s!
Its also a human issue - i have no idea really how to set up a proper compressor or reverbs, so having options of 'C1-C9' etc, means i can just get on with it!
For recording we use my musical colleaques POD - it works well, the models do a good job of giving us way more of a 'proper amp mic'ed in the next room' feel than we could get otherwise!