Naah, I play programmed drums/programmed synths/autotuned vocals stuff with "real instruments". It's just notes and words, a lot of it is not much harder to arrange and play than classic rock. As long as you try to retain as much of the spirit of the original as you can within the limitations of what you got and don't take the "this song is terrible, let's fix it by making it rock" approach you'll do all right.
Sure, the original version will sound better, but yours will be more human, give the audience more to look at, and in a way be more prestigious and impressive. I mean, you're not only doing something other cover bands can't do, you're often doing something not even the original artist could do. That brings back some of the mystique, too.
If real instruments were useless and irrelevant DJs would not be doing "live acts". Even Buraka Som Sistema use live drumming as an addition to the loops. I don't want to go all Denis Dutton on this thread, but there are some pretty fixed things people will always want from art and entertainment.