I've had a Korean JTV-59 for a little over 2 years now. Overall, I've been happy with the guitar itself. Like most Asian-made guitars, it can benefit greatly from a decent setup, some fretwork, and new tuning machines (I put in some locking ones and that really helped the tuning stability). With these enhancements, it is a really nice guitar. I like to take it to practice sessions, or to gigs where I might not want to take my expensive guitars (custom Strats, 335, etc), or gigs where I really need to do everything on one guitar (e.g. switch between acoustic and electric).
My biggest disappointment with the Variax has been with how the modeling/software have been evolving. I thought it was decent enough when I purchased the guitar and it came with version 1.71. Since then, I feel like the 2.x HD models have taken a few steps forward (overall tuning stability and palm muting), but I agree with what RobDog03 said above that the modelled tones seem to have taken a step back in 2.x. I too find them compressed, and in particular some of the 2.x models like the 335 don't sound much like the real thing even with a lot of tinkering in the Workbench software.
Yes, I could go back to the old 1.x models and I have done this on occasion. But then I can't use Workbench on my Mac running Yosemite. And I lose the enhancements with tuning stability and palm muting that came with 2.x. In addition, I'd really like to see more choices of models available in Workbench. For example, a couple different models of Strat would be helpful - a 50's model and a 60's model with beefier sounding pickups. I'd also love to see a nylon model, a ukulele, a bouzouki, and a Selmer Maccafferi (gypsy) model.
I only hope that L6/Yamaha is continuing to work on improvements to the Variax models and Workbench software as the concept has so much potential. I think we are coming up on almost a year since the last Variax update. I know a new Yamaha Variax guitar was introduced at NAMM. Was there any talk at NAMM about future development of the Variax software?