The big issue IMO is that people are trying to capture the endless sustain you get from a cranked up amp, and the only way to do that at low volume is lots of preamp distortion. That doesn't sound the same. It doesn't set in the mix the same. It doesn't cut with a live band the same.
The issue is that you simply CANNOT emulate the real acoustic feedback of an electric guitar in front of a loud amplifier. The interaction between the guitar and the amp is magical (well, can be). That isn't the same with a cranked preamp.
Yes, boosting the front end with a pedal helps up the distortion, but it's still generally a lot less distortion, but more sustain, than people get out of high gain preamp sections. It's just different. It also seems like a lot of people just go for way too much distortion that becomes an aural mess in a band mix. It might sound great by itself, but not so much in the band setting. (See also, turning the damn mids up and not down because it's a midrange instrument.)
I know lots of you know this, but it was a rant I wanted to make. Thanks for listening!