You still can't beat the real experience over emulation. There is just something about running software on real hardware that feels different to emulating it. That is unless you also emulate the hardware!
Let me explain. for me "you can't beat the real experience" only applies to computers, and not games consoles. Console emulation can feel identical to the real hardware, and in many cases emulation can have advantages, for example as Andy mentions about load times, plus other things like save states, more save slots (plus easy backing up of save games) and network gameplay.
Plus if you can get hold of USB adaptors to use the original console controllers with an emulator it just won't feel any difference. For this reason I mostly emulate all 8-bit and 16-bit systems, and use usb adaptors to use original joysticks. But I do still enjoy playing on a real SNES due to the controller, bit when I finally get hold of a snes to usb adaptor this might change.
For newer systems emulation still isn't quite perfect enough to make the switch. N64, Saturn, DC, PS2 etc all still really need the real hardware, although N64 and DC emulation is now good enough to be able to play games and enjoy them, but some work is needed to make many games run well, so it isn't as seemless. If emulation for newer systems becomes more perfect and less tinkering is required to get certain titles to run well, then for me the emulation will take over the real hardware.
And other emulation breaths new life into old games. For example playing PSX games on a PSP or Xperia Play. The games graphics look a bit blocky and dated on a TV these days, but running on a handheld they look great and open up the whole back catalogue for a replay.
Also worth mentioning is MAME and arcade emulation in general. With a decent MAME cabinet setup, or just a decent arcade control panel like the X-Arcade, you can experience running the majority of arcade games ever released, perfectly emulated, and without the expense. For me MAME really does highlight the benefits of emulation and shows when emulation can be better than the real thing. Although for quite a few arcade machines with unique control setups you still don't get the same experience.
Emulation is also very important for preservation. Projects already exist to try and preserve the software from each system, but that is pointless without a way to run the software in the future. as systems get older it is becoming harder to find good working examples, and whilst the retro community to keep some of them going through repair, cap replacement etc... it will slowly become harder and harder to find working hardware as systems age. Emulation will then become the preservation tool to contine running this software and experiencing it into the future, so it is very important.
The perfect solution is hybrid emulation hardware, like the minimig. If system emulation is combined with custom hardware, new hardware can be created to continue experiencing the real systems, but on newer hardware. Utilising real retro hardware in combination with this is also another possibility, such as fitting a minimig inside a real A500, and using a keyrar to interface the real keyboard and mouse. Or a mini-itx pc inside a C64 with a keyrar interfacing the keyboard and joystick. It won' be the same as the real system, but much closer than just emulating it on a PC.
Innovation breaths new life into old platforms.
Regarding the Amiga... on many occasions I've looked at all my Amigas and overall collection, the room it all takes up, and consider how much time I actually spend using it all. Quite a few times I've considered just selling the lot and moving over to emulation, but I'm always stopped by the passionate link the Amiga has to its user. And as also said by Andy, the hardware I now own was a dream for me back in the day it was released and I could never afford at the time.
Only people who were a part of a systems time can really appreciate and understand the need to still own and use retro hardware. To everyone else it seems a bit strange, as they just use whatever is current to get the job done, or only want to play the current generation of games. They will never understand the attraction of retro hardware and gaming.
For me, my Spectrum experience is better than the original, instant save/load to disk is a big win, plus the ability to speed up/slow down the emulation can be handy.
