Crop Sensor or Full Frame? A Constant Conundrum

If you read other photography blogs you've doubtless read about the pros and cons of crop sensor (APS-C, APS-H or Four Thirds) versus full frame (35mm) DSLRs. I am writing this post not because I think I have any new information to share, but because I would like to share my own opinions on the topic.
First of all, I think a lot of consumers are very confused on what sensor size actually means, and what all the hype is about full frame. Full frame DSLRs feature a sensor (which is the digital incarnation of film) that is the same size as a frame of 35mm film - the film you probably used in your camera before you went digital. Full frame is a bit of a misnomer, as it only refers to the full frame of a small format camera. There are also medium format and large format film and digital cameras being made with much larger imaging surfaces! Because these sensors are still expensive to produce, they are currently only contained in professional models. Most DSLRs have an APS-C sized sensor, with a 1.5x or 1.6x crop factor, meaning that a full-frame sensor is that much bigger. Four Thirds cameras (manufactured by Olympus and Panasonic) have a sensor that's half the size of a full-frame sensor, resulting in a 2x crop factor.
This "crop factor" also makes your lenses appear to reach further (and thus making the wider lenses less "wide"), since by cropping the sensor you are effectively "zooming in" on the frame. But when it comes down to it, full frame DSLRs come at about 21-25 megapixels, resulting in a huge image when you put it onto your computer, so you can crop quite a bit without losing too much image quality.
Professionals like full frame DSLRs because it offers better image quality all-around (although many of today's consumer DSLRs offer excellent image quality as well). There are lots of reasons to like full frame. A friend recently let me look into the viewfinder of his full frame Canon EOS 5D Mark II - wowza, a much bigger view than my Canon EOS Rebel T1i! Full frame DSLRs also give you more control over depth of field - it is much easier to get that desirable bokeh, or blurry background on a full frame DSLR, even if your lens isn't very fast. If your lens is fast, you can very easily turn the background to mush! This is what I sometimes wish I had in my T1i, even though I own two fast prime lenses.
What's not to like about full frame? Well, as much as I'd love to own a full framer, there are a few advantages to having a crop sensor camera. For starters, they're much cheaper and still deliver excellent quality! They are also smaller than full frame models. Lenses designed just for crop sensor cameras are smaller than a lens offering the same field of view on a full framer, and thus less expensive (and lighter!). For sports and action shooters, those zoom lenses seem to reach a whole lot further!

What's your opinion on sensor size? Is full frame overrated?