I just think that both things pertrain to the merely concept of design – as in Steve Jobs words:
«Design is both how it looks & feels and how it works» (for the objective, target and context it was meant to)
So in my opinion, we need to focus on the whole user experience design and aim to achieve all of its components in a healthy balance.
And in addition, it is key not to limit ourselves by trends or fashion principies that impose us that «Beautiful and Modern design» exclusively means «flat, clean, simple, etc».
At the same time, not limiting us with saying that aiming functionality and user needs in a design exclusively means sacrificing beauty and aestethics. :)