Hi Nigel,
I owned the Line 6 variaxe 700 acoustic, and while it was great ... it did not have electric sounds. I haven't played the models that do both, but I hear good things about them.
The Strat VG is far from awful, but there is a certain quality about the acoustics that doesn't light my fire. In a pinch, or especially in a band, it would be a viable option. The Strat is in the $1700 range, where the Ibanez Montage was only $600. (Marked $699, but I'm a spoiled brat!)

What i DO love about the VG is the tone knob - it works for all 5 pickup selections, unlike the traditional Fender hookup that eliminates the bridge pickup. I also adore the digital detunings .... a big plus for me.
It has Drop D, DADGAD, Open G, Baritone, Modal and 12 string! Imagine having a Tele 12 string in your hands!

The short story is - I play 90% acoustic sounds, so the Strat is a studio piece. I'm hoping that the Ibanez will travel to the job with me. It's a thinner body than most acoustics, and will be just perfect on those tight stages.