Virtual conferences are good if let's say it takes place in Australia, and I live in Canada (I will not travel down there for just a day conference or even two or three). It could be the other way around.

I have met many members of the WordPress Community through the two WordCamps I have attended (WCT08 and WCT09). I even had lunch with a few of them at WCT09.

What about the drunken opening party or after party? Virtual beer gives me gas.

There are so many countries around the world that are still using dial-up or crappy highspeed.
You need a strong internet connection for good stream viewing.

I tend to stay a few extra days when I go outside Toronto for conferences since I like to travel and explore the cities the conferences are in. If I go to WCSF, I am sure Matt or any of the local attendees would have real suggestions over usual touristy places to visit.

Overall my preference is to go to a WordCamp conference (or any type) and interact in person.

Why not merge both? I attended PodCamp Toronto last year...All (or at least most as far as I was aware) their sessions were streamed. Wether you have 1 tracks or 3 tracks...stream them.
So people who can't make it due to distance...can actually e-attend. Mix both.

I want to meet up with the different...admins/webmasters/WordPRessers of the different WordPress sites/forums/podcasts I read/listen to. WPtarven being my favourite site :)

One last thing: Virtual WordCamps don't give you a WordCamp T-shirt.