In 1999/2000, I was in grad school, across the country, and I was grateful for emulation: magicengine, MAME, NES, etc.
I had only purchased a handful of imports (that is, PCE CD games) in the 90's. I couldn't believe all the JP HuCARDS I had missing out on. I spent at least 2-3 years exporing MAME, PCE, NES titles. Emulation prompted me to purchase more hardware (in California) even though I owned US DUO and TG-CD back in NJ. I even bought a second SMS because I was lusting for Shinobi and Wonderboy and Golvelius and 3DO! My wife thought I was crazy (she still does).
STATUS: I am grateful that emulation got me back into games. I had stopped playing for many, many years (I would play a little during my hiatus, but it wasn't part of my daily/weekly routine).
BOTTOM LINE: If I have the option, I opt for real hardware and CRT. NO SAVE STATES. No mods. There is a bit of a "purist" in me that embraces all the flaws and hardships of aging electronics. I'm not an idealogue (at least I don't think so), but I have argued for an appreciation of imperfection when it comes to sound signals/video output/etc. Again, I'm not completely barmy (I had composite in 1987 for NES, ran the mono audio to a nice receiver). RF sucked in 1987. BUT, I'm OK with composite in 2013 (I know, I'm insane).
FLASH CARTS: I have two but haven't tried them yet (my windows desktop died). I think they will make me very happy because I simply don't have $$$ for Terra Cresta II and kin (I only tried it on emulation; can't wait to play it on real hardware).