I think real vanilla is totally worth it. *Maybe* if I were cooking enough cupcakes for 2 armies I might consider going cheaper with imitation, but otherwise I always choose real.
I've never done whole nutmeg, though I am tempted once I use up the current store of preground, because it would look so cool in my Soho Spice rack.

Shaun
www.homeschoolblogger.com/shaunms