I have always done hand applique, I love doing it and I love how the invisible stitches look. I am not proficient at machine applique, though I have tried it recently. I would like to get better at machine applique for just the reason you are talking about. I would not want to wash hand applique a lot, I don't think it would survive well. I have an old Bernina, and it doesn't have a blanket stitch, so if I applique on it I have to use either zig-zag, or a blind hem stitch, neither of which are as nice as the blanket stitch.