1. Yes, I love having one! It makes me bake more as I can be lazy and not have to worry about kneading/rising cycles.
2. I think so. I wish I used it more, but sometimes I have trouble keeping enough bread flour around the house. It did take me ages to figure out how to keep the loaves from coming out all weird, but the smell of fresh bread is definitely rewarding. We don't use it for our 'regular' supply, but more for speciality things when I'm in the mood to bake.
3. Sure! In fact, I think they make baking more accessible...a lot of people are scared of things like rising times and such, so a breadmaker does all that for you. It's so much fun to try new recipes for flavored breads and sometimes I use just the dough-making setting if I want to make something else like buns or bagels but can't be bothered to knead :p.
We can't seem to transition from shop-bought sandwich loaves to homemade primarily because MOST of our bread consumption is via sandwiches and my loaves never turn out well enough to deal with trying to slice thin enough for sandwiches. I also buy low-calorie bread which homemade is NOT, so I use our breadmaker solely for 'extra' stuff. However, I know tons of people who use theirs everyday for all bread! My last load was sundried tomato & olives, but next I want to try something sweet. Can be good if you want to do a soup in slow cooker and then set the breadmaker on a timer and - voila - fresh soup & bread for dinner when you come home from work!

eta: I own a mid-range Panasonic that was £50 from Debenham's (we had giftcards to burn). I'd do some research to the best models out there, b/c ours was an impulse buy. It DOES take up a lot of counter space, but I still love having it.