Yes you can use a simple instrument track, each there own, I don't like them because I often will change my mind about which VST I will use.
If my midi data is in it's own track I can insert VST's and by just swapping the midi track output try different VST's and sounds. You can also assign multiple midi tracks to one vst,, like upper and lower parts, or drums kit pieces.
If you use a simple instrument track it's way more complicated when you wish to swap to a different VST.