Just to give an example of "the rarefied field of physical modeling": SampleModeling/AudioModeling/SWAM instruments enjoy some popularity, I'd say they were the go-to demo when MPE controllers had a burst in popularity a couple of years ago. Most of them use a hybrid sampling-synthesis approach, and some of them use almost entirely synthesis. Astoundingly realistic when used correctly.

Personally, I'd say physical modeling still has a lot of unexplored potential, but that doesn't seem to be a popular opinion.