my experience (i work 9/5 in a commercial studio):
it simply doesn`t matter. shit in shit out! digital is great with a engineer who has the right knowledge to to garage punk stuff and the same is with analog recording.
i personally record/mix/master digital and i take really good care that the signal before the mic sounds exact the way i want it to sound. then i also think that live recording is the only way to make good R`N`R record... i mean vocal overdubs or some solo shit are no big deal but the main stuff sounds the best live... because of the feeling.
regarding some digital gear: you can make a lot out of it but there are so many plugins and apps or whatever that it`s a bit hard to find the right stuff. once you feel right with it ... it`s very straight forward.
regarding "real" garage sound i made the experience that the mic preamp has a lot to say about the sound colour. tape distortion is something we compared in the studio... plugins and tape machines: sorry but soundwise both sound very good. so it depends a bit of what you prefer workflow-wise.
hope that helps you a bit.
CHEERS
Rob