We do one all-inclusive package holiday a year. We look at it as the cheapest way to get away for a week for some sunshine without having to worry about anything whatsoever. We did Rhodes a couple of years ago and LOVED it, then Lake Garda last year (didn't like it, but mostly because we're more beach people than mountains people), and doing Lanzarote later this week. It's our tune out week - we do absolutely nothing but lie around and re-charge our batteries.
If you're more into exploring, eating out, etc. then it's worth it to book something on your own but if you just want a cheap way to chill, I see nothing wrong with package holidays....