Well I have just started to play it, and may have a better idea later on. I have heard the same thing about rail pickups, particularly the Bill Lawrence or Joe Barden Tele pups that are really trying to sound like a Tele. The Lil'punchers are supposed to sound more like a humbuckers, and so far I think they pretty much do. Singke coil mode is not as hot, but sounds more like an actual Tele. I think I will use both H+H and S+S settings.
I probably could have skipped the SC+H and H+SC modes. The SC can't keep up with the H. I could also have skipped traditional N+N single coil mode. The difference between N+S and N+N in single coil mode is barely audible.
That's a first impression we'll see how I feel after I have played it a while.