I hear this reason quite a bit, but I have a hard time getting the reason through my thick head. Most extract kits are $4-13 higher in price and add something along the lines of 1-3hrs to your brew day. Your time has to be pretty cheap to make up the difference.The only thing I don't like about extract beers is the price. All-Grain is cheaper.
On the flip side, I get the attraction of tweaking every aspect of your brew to differentiate it. Its fun and obviously a labor of love. It allows one to produce a beer that is completely unique to them and their brewinf style. Money however is not saved with all-grain.
I view kegging vs. bottling the same way. I bottle some so I can share, not because its faster or better (although belgians and stouts do seem better bottled conditioned)