It sure beats the heck out of the old SYSTEM.INI, WIN.INI, etc. files.
Think so, do you? Well after having had a corrupt registry at least 5 times (back when I was forced to use NT at work), I must say I can't agree. I'd rather have a corrupt ini file that I can easily replace or edit with a text editor, than have to totally reinstall Windows and all programs. (maybe things have improved with XP - I don't know)
When I want to make settings changes, I'd rather edit a small ini text file than have to open and search a convoluted 20+ Meg monster. Also many many programs do not remove registry entries when uninstalling, leaving loads of crap that slows down the system.
It's a fatal logic error that the most critical file on the system is also the most accessed and therefore the most likely to become corrupted.