I have to agree with you -- I believe there is a bit too much paranoia when it comes to Javascript.
That said, however, I only use Javascript as a "convenience." For most of my sites, I have to assume that a user has Javascript turned off, and I have to control things from the server side. So, form validation happens on the server. The thing is, when I mis-enter something on a site, I prefer active feedback (such as red text telling me I forgot to enter my phone number, etc.) to some dialog box that pops up. The dialog can be helpful, and save a user from having to re-submit a form. However, a well-designed page won't leave the user feeling like she just wasted her time filling out a form only to discover a single missing field requires her to re-enter all of her data.
The thing is, almost anything you can do with Javascript, you can do in some other way. Form validation, dynamic content, image pre-loading, etc. can all be done in other ways. I like Javascript, and I believe it has its place. But if it were to go away, I wouldn't lose sleep. There are plenty of ways to skin the proverbial cat.