Absolutely - use a smaller amp and mic it up. Check out pretty much any rock band these days. Sure, some will use the classic Wall of Marshalls (with one or 2 mic'ed up) at big venues, but the majority now use relatively small amps - often between 50 and 150 watts, and have these mic'ed into the PA desk.
This makes it very easy to define your on-stage sound, and gives the sound engineer the flexibility he needs to take that good sound and project it out through the PA.
If you use massive amps, it can be very difficult to tailor your sound to work in different venues, whereas a 50 Watt Marshall can be set to your liking for breakup and overdrive in even small venues.