I don't think the Axe is a magical, miracle box that will transform your guitar tone into something heretofore unimaginable, but it really is a great unit. Guitar players tend to employ a bit too much hyperbole and cult-like praise to certain piece of gear ;-) But I will say, my current rig is the best setup I've every run so far and I've been very happy with the Axe FX. While the unit may seem complex at first, at least in my case it's allowed me to greatly simply my rig by just letting one box take care of it all. That in turn has had really cleaned up the audio path and given me a more portable and reliable rig.
It's also saved me a lot of money in the long run. While it seems like a lot of cash to plop down, it's saved me from swapping around so much gear. When I get the urge to try different amps, distortion pedals, pre-amps, etc. I can satisfy that urge with some tweaking around in the Axe. The bottom line is, it really does sound good, and it keeps me from thinking I "must" try this or that other amp/pedal/etc. in the elusive tone-chase.
Also, once you eventually start getting deeper into the amp blocks, you realize you're customizing and fine-tuning your sound in a way you never could with a traditional amp. It's like a magical, miracle box!!