The thing about the midi conversion is the best of both worlds. Normally midi is entered from a keyboard controller or manually drawn. This will not come across the same as the way you would play it on a real bass.
I can lay down a bass track and convert it and edit into exactly what I wanted in way less time than it normally takes me to fuss with the bass tone, then the actual performance has to be perfect. With this method you play it as best you can and don't have to worry about tone, string buzz or small mistakes. So it takes what could have been an hour or more down to a few minutes.
The editing if you are handy with the PVR is where you can polish the track to perfection and for me the end result is a better overall track than what I could have accomplished in that time period.
The sound, tone etc of bass in a rock mix is a matter of personal choice and of course there's no substitute for the real deal. But if the real bass is not satisfactory you would have to re record it properly. To me there's no turd polish. A good recording starts at the top of the chain, not the bottom.
VST instruments are samples of the real thing and there is no difference audio wise in a mix. It's all in how you manipulate them.