Good posts, I hope it will encourage others to bring their opinions out. I personally record midi but never quantise (as you say it sounds false). If I record with the Motif XS then I have the ability to 'clock shift' tracks, ie the drum track is retarded slightly (like drummers ) and the bass track advanced. I find this gives a more realistic feel even if those tracks are quantised. Plus adding the odd drum beat or bass note.
I'm hoping to get into audio recording with my Fostex MR16, it's just finding the time, it would be worthwhile maybe getting a thread going on recording this way - ie a beginners guide. As you say you've got to keep doing it until you get it right which is I suppose the attraction of midi and it's easy editing.
Cheers
Spike