Hate to reopen an old thread, but I thought I would share my reasoning for buying a HD500x, with the intention of both using it as a home recording device and playing shows. My favourite band is Thrice and for quite a while their lead singer/rhythm guitarist Dustin Kensrue was rocking a Pod HD500. The tones and sounds that Dustin was able to get out of the HD500 was phenomenal and behind my reasoning to persist with trying to learn and understand how to get a good studio/live tone (it is possible). Worth noting that Thrice at times are heavy, but their modern sound from the last few albums is rock.
The one thing people need to understand about the HD500 or any digital effects modeler is you need to put the work in to understand how the modeler works, it's caveats and how you can work around them. If you're listening to your patches through cheap computer speakers, your live sound is going to sound nothing like it. PC speakers will colour your sound, whereas monitors and PA speakers will sound completely different because they're not colouring your sound.
The most important thing you have to remember is that depending on the venue, the PA system at the venue, who is at the mixing desk and other variables will affect your sound. In my experience it is rare you can show up somewhere and just have a set of patches that immediately sound good, you'll have to tweak (this is why a sound check is VERY important). Show up early and make sure you're happy with the sound before you play. And this is why it is important you learn every knob, setting and effect on the Pod, particular parametric equalisers to clean up your sound (especially hi-gain).
Now, here are some performances where Dustin of Thrice is playing through his HD500. The studio ones are being mixed (obviously) but it shows you the kind of sound that you can get if you work at it, I think these sound great and seeing Dustin play the HD500 was why I took the plunge into Line 6 modelers.
(I love the dirty tone Dustin gets out of his guitar here)
Then for the heavier oriented players, you have bands like Twelve Foot Ninja who are a bit of a fusion, but have progressive/djent style roots. Their guitarist Stevic has been a Line 6 player for a while now, but their debut album and for quite a while he was playing a JTV with a Pod HD500x in a live setting and also recording. To get that djent sound, it is a pretty stated fact that you have to use digital amp modeling because the djent sound is notoriously digital. If you look at some live performances around 2015, you'll see Stevic's Pod in action.
TL;DR anyone who tells you that you can't get a good live sound out of the HD500/500x has never tried, it's more than possible and has been done. Tweak, tweak and tweak some more. Don't expect the HD500 to sound good out-of-the-box.