Ripping out or covering up the tub in a bathroom remodel?

There seems to be some debate between myself and my wife regarding what to do with our bath tub.   We are getting ready to undertake a bathroom remodel, and my wife wants to rip out the tub and the tile.  To save time and money, I wanted to just install one of shower units from a company like bath fitters (some something similar).  

She seems to think that you shouldn’t put one of these units over the existing tile, and that it won’t look very good.   When factoringin the labor, time, and possible problems that we could dig up, I think the overlay is the way to go.   

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