This has always seemed like a hot debate in many of my earlier college courses in electronic music.
This one shmuck---who wasn't even in the class, but would hang out there, just because---commented that they should hire a musician to play every single keyboard part there was because he didn't think a machine should do it. Incidentally, it was a comment he made after I had a little presentation on modern music, and played many different samples of music including NO's "Liar" (from Republic, in case you didn't know). Then again, he was just one of those older wankers who thinks that a band shouldn't play on electronic or "artificial" instruments, just "traditional rock-and-roll" instruments. HELLO!!!! An electric guitar and an electric bass have wiring!
But back to the topic. With bands like NO, it's necessary to have some pre-programmed stuff. It adds to the sound. It would be extremely silly and complicated to have an individual musician playing out on all those repetitive sequences. Have you ever tried it? It gets tiring to play a simple arpeggiation over and over again.
Lip-synching, on the other hand, bugs the hell out of me. It's one thing when a popular band DANCES and sings at the same time, but even then...if they ARE a musical group, they should focus on their singing! It would suck if NO was doing that with some of their peformances, since they have gained the notoriety to really play their music live. I was kind of sad when I watched the stream of their "performance" of Temptation 98 at Commonwealth as well as their appearance on TOTP for "Here To Stay". Maybe those producers (i.e. London Records) who had them filmed for their performances just wanted to synch them up to the actual tracks themselves and that NO had no say in it...?