I live in a tiny city. I get the best of both worlds by gate-checking my bags. I don't have to find carryone space, and my bags are waiting for me at the gate when I get off the plane. I also get to have both a window and an aisle seat on the plane since the plane is so small.
Indeed! It only takes a couple rounds of that mess to learn that anything you actually need has to be carried on, and once you're used to packing all of your necessities into carry-ons, it's easy to wonder "why am I bothering to bring all this other stuff"?
The only things that need to be carried on are things that you need for the first two days. After that your luggage will be found and you have it again. If you only travel for a 3 day trip then carry everything on. However for longer trips I like to have a weeks worth of clothing (particularly if it is personal so I don't have to spend time and money at a laundromat). It is very nice to have a weeks worth of clothing but not have to carry it all with me on the plane.
Actually on the way home I prefer if my luggage is lost as then they deliver it to my house for me instead of my having to carry it.
Gate check is different from checked bags. I have my bags in my possession until the door of the plane where I drop them off and someone else picks them up to put on the plane. Then when I get off the plane my bags are waiting right at the door of the plane (sometimes I need to wait 5 minutes). The small planes I normally fly have tiny overhead compartments that can barely handle a small purse.
If you live in a large city and only travel to other large cities you will never see the above.