Hello diverse379,
I do not actually own any software synths, but I plan to in the future when my ife and I purchase our first house and I start building my mini home studio. I am the proud owner of the Roland Fantom-S, and this topic has been discussed on Roland Clan's forum.
I agree, soft syths are sounding better and better. With a nice sized hard drive, you have room for numerous samples and multi-samples of very high quality. Another pro of software synths is that it is easier to edit sounds and sequences because of the size of your monitor. Hardware synths in this regard are getting better (I love the larger display of the Fantom-S as opposed to my old Yamaha EX5), but it still does not compare to a computer monitor.
But, as you have stated, the latency issue is a big turn-off for live playing. Hardware synth manufacturers have found solutions to compress high quality sound into a small amount of memory. Also, the hardware works alot more flurently with the software and memory to the point where there is 'practically' no latency.
One think that hardware synths & workstation have the edge right now is in different types of synthesis. Especially in creating new sounds and being about the coontrol sounds real-time in new ways. Take for instance the new Roland V-Synth GT just anounced. I don't think that you can make a computer and software synths create sounds like the Roland V-Synth. With some of the hardware synths & workstations out now, its not just about playing back a sample from rom. Although, I have heard about some software synths that actually try to model real acoustic instruments and not just play back a collection of samples. I've heard that they sound prettty good, but still not up to the level of some hardware synths.
One thing I will say, the price and seemingly endless expandability factor is very actractive to me for recording stuff.
p_music