Here is a video demo of the brand new Fender VG Stratocaster, from live at NAMM 2007.
If ever there was a really good reason for GAS, I think this is it. No funky MIDI plug-ins, and just enough tonal variety to make it actually useful while gigging. Yes, the telecaster (and XII string Telecaster) tones sound, well just like a telecaster sound, with the benefit of a five way switch. Modeled Baritone tuning with that hot, screaming humbucker fatness, all with the quick twist of two standard stratocaster knobs. It really makes you wonder if maybe this same setup will be available in a Telecaster model (or something with a hard tail bridge!). Nudge, nudge, wink, wink Fender!. The audio on the video clip is a bit noisy (from all the people in attendance at NAMM), but from what I could hear, this is this may become the "axe of the future". I've played the Line6 guitars, and what those do provide with more tone options, they lack in actual tone. To me, the Line6 modeling sounds were "really, really" close, but just not exactly there or more precisely, lacking "character". I do enjoy using the POD amps for recording, as you don't lose the "character" of whichever guitar you are using.
Fender has a long record (no pun intended!) of hitting the mark when it comes providing functional, yet advanced features on their guitars. According to the specs, the specialized electronics provide "Five Guitar Tone Banks Deliver 16 Sounds from Humbucking to Acoustic, Five Tuning Banks Allow You to Change Tunings Without Physically Retuning". Hmm... what else would you really need? I won't be completely convinced until I hear and play one, but you know I'll be pestering the folks down at American Music!