When we record a band, we always try to get the initial tracks down with everyone playing.
The feel and interplay are a lot more 'real' that way. We use line out on everything but the drums. That way all the tracks are clean takes of each instrument. If someone insists on micing and recording their cabinet, it gets done later.

Of course we have to go back and redo vocals, as there is always drum bleed. Often the vocalist is also the guitar player, so we don't try to isolate him during the initial recording. We try to get a real good performance from the vocalist afterwards, so I guess we do a mix of sterile and live here.

Then each track is scrutinized for 'oops' and often a note or two can be borrowed from elsewhere. In the real world, it is not often that you get to record the kind of talent that can nail it all in one take. There are lots of bands that want to be recorded, and not all of them can pull off the one shot performance.

The great artists can. Many live recordings to verify that. However, not all of us spend the day recording that level of talent! Often those 'cleansing tools' are a necessary part of the day.

I do not work here, but the benefits are still awesome
Make your sound your own!