Internet Home Searching: Good or Bad?

If you've ever purchased a home, I'm really curious as to what you think about this topic. National statistics say that 84% of home Buyers search on the internet before they start "physically" looking at homes. This way they can eliminate homes they don't want to see. However, there have been multiple times I (as a realtor) have driven by a home that Buyers have elimintated on the internet, only to have them want to see it. And in some cases, they actually bought the home (they didn't originally want to see!) and tell me at closing they are so grateful for buying the home of their dreams!

Do you think searching on the internet is the best way to find your dream home? Is there a way that internet search results could be optimized to reduce the possibility of "passing over" your dream house? What about "virtual tours"? Is there one type (i.e. static pictures) that is preferable to another (i.e. 360 degree rotation)?