I'll tell you whose REALLY stupid-- the person who just goes and gets a 64-bit OS and makes most of his previous software useless. You are using ancient technology at 32-bits or 16-bits; why not try the truly over-bloated 64-bit OS that's incompatible with your software.
No, the person who is really stupid is the one that thinks a 64-bit OS is incapable of running 32-bit applications and offers no benefit over a 32-bit OS.
You obviously know very little about how x86_64 is implemented. My system runs both 64-bit linux and 64-bit windows, both of which have ran every 32-bit application I've tested without complaint (although the only 32-bit applications I run under linux just now are actually windows ones in WINE). The machine has 4GB of RAM and 896MB of video RAM, which just isn't possible in a 32-bit OS 4GB address space (unless the OS supports PAE). Plenty of the applications (read games) I run in Windows are 32-bit, though drivers and codecs are 64-bit.
Generally, the benefits are that 64-bit optimised code runs faster on the CPU than legacy x86 code does (there are a few rare exceptions, even in some of my own code), since 64-bit code can make use of 16 64-bit general purpose registers for integer code and at least SSE2 for floating point/vector ops.
Furthermore, 32-bit applications in the 64-bit environment can allocate more physical RAM than they could in a 32-bit one, since on 32-bit, only around 2GB was addressable in total (1GB of address space reserved for OS/hardware space, another 1GB used to map in the video memory. Again, PAE can mitigate this slightly). Now in a 64-bit OS, the 1GB address space used for hardware doesn't get in the way and if the process doesn't need direct access to the video memory, it doesn't have to be mapped into it's address space either. You might think that no 32-bit application should ever need 3GB of RAM, but then you probably haven't played Fallout 3 (after patching for large address awareness on 64-bit) with half a dozen resource hungry add-ons and HD texture packs. It certainly helped in this instance.
In short, if you have 64-bit hardware, which let's face it, every new desktop/server PC in the last 5 years (at least) has, using a 32-bit OS is pretty pointless. Even without more than 4GB total memory installed, 64-bit optimised code is usually a better fit for the hardware.