Another problem with apparent and true wind is that the difference between the two can cause you serious problems, especially on a multihull.
For instance, say you are sailing nearly dead-downwind in 20 knots of wind, and your boat is making 15 knots. The apparent wind is only 5 knots... and you've got a lot of sail up for the relatively light winds. Almost every boat can have full sail up in 5 knots of wind. You get to a point where you have to turn 100˚ and head upwind... now, you've got full sails up in 20 knots of wind... and while it is a bit much it is manageable... then the boat starts moving upwind on a close reach, and you're doing 15 knots upwind.... and all of a sudden, the apparent wind is now 30 knots... and you're way overcanvassed—and you capsize.
Going from nearly dead downwind to upwind on a close reach made the apparent wind jump from five knots to almost six times as much.... You do need to keep an eye on how much sail you've got up when going downwind, because if you do need to turn up... you want to make sure that you don't have too much sail to do so safely.
Also, be aware that the true wind your instruments give you are only an approximation. The wind instrument only gives apparent wind with any real accuracy.
For instance: Say you're sailing a course of 0˚ with the wind out of the east at 10 knots, and your boat is moving at 10 knots... The knotmeter on your boat reads STW as 10 knots. The apparent wind is about 14.15 knots at 45˚. (10^2 + 10^2)^.5=10*sqrt (2)=14.15 knots. The wind instrument calculates the true wind to be 10 knots at 90˚, or something fairly close to that, based on the knotmeter reading and the apparent wind sensed by the wind instrument.
Now, say your sailing a course of 0˚ with the wind out of the east at 10 knots and your boat is moving at 10 knots, but with the help of a northernly current moving at 5 knots. The knot meter on the boat now reads STW as 5 knots. The apparent wind is still only 14.15 knots at 45˚, since the boat is still moving north at 10 knots with a 10 knot easterly wind. However, the wind instrument now calculates the true wind to be 11.17 knots at 63.4˚... which is obviously incorrect.
For the wind instruments to calculate true wind accurately, they'd have to use SOG rather than STW. However, none of the ones made to date, AFAIK, use SOG—speed over ground, rather than the less accurate STW—Speed through water.
One other point, which affects multihulls more than monohulls, is that your VMG is often better if you fall off a few degrees, since the increase in speed may well more than make up for the extra distance sailed. This is especially true in faster multihulls, where falling off from 40˚ to 50˚ off the wind may increase the boat speed by 30-40%.