The biggest issue I see with image replacement (which I, too, use
ridiculously often) is with printing.
Most browsers remove background images from printing, and since image
replacement usually makes extensive use of background images, the
print will usually only list the text (which clients tend to dislike).
This has got one specific benefit, though: if your logo is usually
set reversed (white on dark), you're not left printing a badly anti-
aliased, low-resolution white image on white paper.
So my advice is to use image replacement for navigation, buttons,
etc., but not for logos or images that you require to be able to be
printed by a grandmother.
Cheers,
Kit Grose
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