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Well it's certainly easier to work (a lot). Generally that's for the generation that still knows how to work with hardware.
It's like synths. Don't you prefer fiddling real knobs on a hardware synth, instead of tweaking the same buttons with your mouse, on the screen. Same thing.
And expensive. Well quality has it's price. Communication with several software packages must be ensured. Design must be so that it speeds up workflow, not the opposite. If it's too expensive, take a look at the new Behringer stuff (yeah I know, Behringer... compared to high quality brands they're crap, but you can't complain for the price), like the BCF/BCR2000. If you are happy with the sound of your audio app (so, you don't want an outboard mixer "for the sound"), and you want hands on control, those things are ideal for that.
Mackie Control is one of the most popular ones, because it's well supported, and well designed (motor faders by P+G, I'm building my own controller, for the crappiest motorfaders by P+G you pay 80 eur a piece...). But that doesn't mean there aren't other companies that make similar stuff, like Radikal Technologies, Doepfer, Kenton.
Besides, if you think the Mackie is expensive, take a look at the new control surfaces from Digidesign and SSL (agreed, they contain audio parts too). The fully fledged versions go for around 60000$ (and boy, that SSL AWS900 is great).
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