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Integrating hardware is easy in Cubase (I'm using Cubase 4), as long as you have enough inputs and outputs on your audio interface.
Obviously, research the compressors you're interested in. If you have enough studio experience you'll get a feel for what hardware you think will work for you. Definitely, for a couple of grand you'll be able to get a very nice analog compressor which will impart a certain sound to whatever you run through it. Each piece of equipment (or software) has a particular sound. There are hardware EQs which cost many thousands of dollars due to their sound characteristics. For some producers, that's money well spent. For others, that's crazy money. As long as the music is beautiful in the end...
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