Paul Galbraith used a pair of Royer 122V ribbon mics 3 feet back on his album featuring "Bajo la Palmera". These are active ribbons, mitigating the need for a high-gain preamp.
Russell's approach is a bit far for my tastes, especially in the less than stellar acoustic environments in which I find myself. I find the transients and details get lost in the enveloping room even in the best spaces. It's a question of taste. Jason Vieaux's Ponce album is another fine example of the roomy sound. Barrueco's Sometime Ago finds a happy medium, as I remember it.
I am still mostly using a matched pair of large diaphragm condensers about 1-2 feet from the guitar. I usually add space in the computer. I'm not really recording classical music at this point, however, though it overlaps.
Listening with respect to microphone placement, mixing, and editing is infinitely more important than particular tools such as the microphone itself, as long as a basic level of quality is met. I recorded these pieces with a Tascam DR100mkII, and I consider the sound to be at least adequate:
http://brianbrock.com/Spring%20Twilight ... index.html
(the first track is steel string, the rest my trusty Rafael Moreno Rodriguez classical)