i think its ok to use effects on acoustic guitars... only "purist" wil say otherwise...
last 2006, i watched antonio forcione quartet live here in manila, one of the best acoustic player in UK..
dubbed as jimi hendrix of acoustic guitar.. he's playing a yamaha acoustic plugged on a Yamaha AG stomp plus volume pedal and TU-2.. the sound is very very good.. plus he's performing with his band (cello, upright bass, percussion..) although the theater was acoustically treated, when he was giving us a workshop... he was plugged on a Fender Stage 100.. still sound acoustic to my ears..now aint that acoustic !!..
even on he's dvd he's using chorus and reverb.. on nylon / steel acoustic..
my point is on our setting, we don't often have the luxury of acoustically treated bars, high end condenser mics, and a good sound engineer.. so little bit of effects can help.. marami naman effects specifically for acoustic..
yamaha AG stomp
Fishman Aura (yung malaki)
tska yung sonic exciter i forgot the name
i've been trying to get my hands on the FISHMAN , but i bought a telecaster