Cutting down on travel saves time and money for everyone, and from what I've seen so far, Cisco Live is a pretty good virtual experience. It's really come a long way from their earlier virtual environments, which reminded me a lot of Lego Island (anyone with kids will know what I mean). There's a much stronger social media component now, and in some ways, it's a better way to collaborate, since it's much easier to know more about others in your midst, as well as being able to engage with them.
Collaboration is always better in person, but that assumes you know everyone around you, and are able to bring them together at the same time. C-Scape is a pretty big event, and for everyone in your orbit that you know, there will always be many others that you don't.
Enough said, and I'll just add that I'm glad to be part of the in-person contingent going to C-Scape, and I'll do my best to keep you updated here and on Twitter.