Midi controllers are great, but setting them up can be a negative experience. The other big issue with software synths honestly is DRM. Some have DRM that is just as bad as video game DRM. I got locked out permanently from a VST I was using to generate melody data, and when I reached out to support they told me nothing could be done and I would have to re-buy the VST again. What happened was I had to keep inputting my license because occasionally, the license info would become disassociated with my VST. What I didn't know was this counted towards the max number of installs my license was capable of.
The other big issue with VST is you end up in a situation where you cannot update your operating system because over time, VST's become unsupported and will not run correctly when you update your OS, DAW software, or audio drivers. This is an absolute disaster in terms of security.
I would rather work within the limitations of synth hardware than deal with all the pain that comes with software. I still use VST software though. Aside from VCV Rack Serum is outstanding and will do almost anything you could possibly need a synth to do, and it does not have crazy licensing issues.
I think most artists use a hybrid hardware/software workflow, but there are definitely disadvantages no matter what path you choose.
SuperCollider and Sonic Pi (which is built on top of it) are so powerful I can't even imagine there are commercial solutions that can beat them!
I have plenty of software synths that can easily match or exceed my hardware synths' capabilities or sound. But there's just something about the hardware. Plus, it's nice to look at something other than a computer screen sometimes.
That said, I still primarily prefer software. Hardware is a "nice to have," a nice change of pace, but if you have deadlines, relying too much on hardware is a pretty bad move.
And a hypothesis: this should not be because analog/digital modeling is very close in double blind tests
However your hypothesis is already false because the fact exists.
Which means: consumers don't care about double blind tests, there are other things going on here
The value is there, you just don't understand the value proposition
Just because you CAN do something with a product doesn't mean it is easy or obvious to do those things. I could go on for hours about this topic but if you're truly interested in it all I can recommend is make more music!
Some people do buy synths as sort of an art piece but they are rare
Hardware synths absolutely still do have sonic capabilities that are difficult to emulate in software (we're getting to that crossover point, but it's still some ways away). Let's just assume that you're right and software can do anything hardware can...
Some of the critical factors that make hardware more enjoyable (and thus valuable) for a musician:
You don't HAVE to use your eyes. Don't underestimate what a huge part this plays. The context switch that you go through when switching from the largest part of the brain (visual processing) to audio is substantial. It removes you from flow state. Artists will pay high premiums to stay connected to what they are doing emotionally. Clicking a mouse on a computer is one of the fastest ways to get out of emotional flow. Hardware is one of the easiest to stay in flow.
Physical performance. Just because you can do something with a mouse and values doesn't mean it's easy to do something that you would hear a human doing in a performance. It is far, FAR easier to just... perform it. Eventually we'll have humanization algorithms that blur this but again, we aren't there yet.
Software is also far, FAR too flexible for many musicians. The design of software often times gets you out of the sweet spot of the instrument. Typically when you buy well designed hardware you can't do anything that makes it sound bad. That's a magical thing. Typically in software you can make a sound EXCELLENT (often extremely excellent) but it takes a ton of work to get there. Different ways of doing music.
There are a lot more things I could go into but those are a few of the big ones
There is a big world of difference between a tool and an instrument. Musicians explore those differences intrinsically as they develop their skill. Its not so easy to develop skills on a device that pushes upgrade notifications on you in the middle of a session, though ..