Why not both?
I have both a DMG our own ThursdayCustoms built for me, as well as using vba8 on my Windows Phone. The device is a Lumia 1520, so it has both higher end hardware spec and a big screen, it's comfortable and doesn't really hiccup, and no need to worry about a failing battery wiping out your sav since you can cloud sync it and do a local backup. There is nothing however quite like the sound of a real DMG, especially for the low-end. I have tinkered with all kinds of crapola, such as recording a channel from the smartphone, and the others from the DMG and putting them together on the PC. Lots of quick switching stereo effects tend to give the DMG a hard time for example, so voila there's a way around that. If it were possible to sync LSDJ between the emulator on the phablet with the DMG, that would be pretty wicked, but there's always other means
As for the original question, there are a couple of arguments that exist on the sidelines here. One; considering emulated vs hardware reminds me of the debate of the sound quality of vinyl vs CD. Everyone who cares at all about music has heard of or engaged in that one at one point. The other is the purist argument; one saying it's only real chip music if it's done on real hardware vs the other (sometimes labeled fakebit) that are simply emulating the hardware or sampling it and actually making the music in a DAW. Fun subjects to ponder.
In any event, my original statement remains the same for any angle one could look at LSDJ or chip music in general with; why not both