I haven't given my 2 cents about compact fluorescents in this thread because, well, they're really only my 2 cents and as I haven't a deep knowledge of the intricacies of the bulb, I didn't feel I could contribute that much to the discussion.
Having said that, though, coming from the main consumer in my household and the typical type of consumer at that, my biggest problem with the CFL's is the mercury inside them. As anyone with children and pets knows, they tend to be hard on a house and furniture. I can't tell you how many times a lamp in my family room has been knocked down by one of the kids when they are playing and usually a bulb gets broken in the process. There are plenty of places I could use CFL's where this would not happen, but not the room where my family spends the most time. If the only thing I have available is CFL's, that is going to cause me problems, since the clean up process is difficult and dangerous. Until a safer alternative to the CFL is developed, I think our government should stay out of the consumer's pocket (and conscience).
I do my part to sustain the earth for my children, etc. I own a hybrid and drive more fuel efficient vehicles, I turn off lights, recycle what I can, etc. I honestly don't think using CFL's is really going to make that big of a difference. As for cost effectiveness, I've lived in my home for 6 years. There are regular old light bulbs that we installed when we moved in that are still working today. That seems pretty cost effective to me. And that's my 2 cents.