I have not tried an axe fx myself, but according to many, including Chimp Spanner (look him up), it does. Even without having tried an Axe FX, I can tell that the price to performance ratio is in Line 6's favour.
However, until I try one I can't say anything for sure. Believe me though, if I had the money, I would buy and the axe fx II in a heartbeat. Given there was no waiting list.