Yes, I certainly wouldn't be so harsh as to say only stupid people buy them.
However, I really have heard that they don't work well and are unreliable. It'd be nice to have cheap phone...but...well...
I don't know what services you have available in your area. We go through Century Link, which used to be Qwest, which used to be USWest. We bundle our phone and internet and qualify for a low income reduction, plus I call and threaten to quit if they ever up my bill when they try. SO right now I'm just starting a brand new five year price guarantee...we pay about 50 a month for phone with unlimited long distance and features, and high speed wireless internet. I "think" that's a good price...haven't really done any comparing, but it's within our budget.