I have struggled with this one too!! I’m a delay and distortion junky … and it goes on and on from there
Currently I use vsts for all effects, monitoring through them live via a MOTU interface.
I used to have delays and other effects in my rack, but I ultimately thought they took up too much space, especially when I started considering a mixer to create an aux send environment. I also couldn’t have as broad a palette as I wanted from a space and cost perspective.
I’ve also used an external mixer and guitar pedals in the past
All perfectly valid approaches with their own pros and cons (“all of the above” is certainly a valid approach too … but personally I need to narrow down my paths to be productive). I’m trying to give the vsts a real shot though. Theyre certainly not perfect by any means, but it’s flexible, powerful, sounds great, cheap to expand and with plug ins like sandman pro you get all the modulation tools you need