The Pros and Cons of Recessed Lighting

We've been stewing over installing recessed lights throughout our home. What we have now is really bad light fixtures with oddly placed light switches (ie, if you want to turn the light on in the bedroom, you have to flip the switch down the hall). We've heard varying advice from our friends and neighbors, and the general consensus seems that everyone overcompensates and installs way too many lights, creating a "stadium" setting.

And we've heard strong opinions against recessed lights, like how difficult it is to create different light moods. So, for those of you who've installed these lights, or have lived with them, what are the pros and cons of recessed lights?