THANK YOU!!! This is exactly why we refuse to check luggage!!
When they started the $25 thing, we actually considered it, since before we were told it was a "courtesy" that they checked luggage, so now that it was a separate service we were PAYING for, we thought maybe that might help ensure that we actually saw our luggage again. Nope. The $25 doesn't mean anything except that the airline gets $25. No guarantee that your luggage is not being mishandled.
We do NOT have oversized bags for carry-on, but we bring the limit of what's allowed. It's not because we're too cheap to check it, it's because we want to see it again. We NEED those things when we get to our destination.
Also, the baggage claim is often a nightmare. The first time we flew carry-on only, and walked off the plane without wasting an hour waiting on our bags to hopefully show up (and if they didn't, wasting another hour standing in lines to fill out forms for missing bags), the freedom was exhilarating. Wow.

We will never check another bag again if we can help it, even if checking was free and carry-on was an extra charge. Not until they can offer me either the promise that my bag will arrive when and where I do, or that there will be decent compensation if that doesn't happen. (and I'm not holding my breath for either of those things...)
As for crashbb's story....wow, no words!! Why on earth didn't SHE book the aisle seat if she needed it so badly??? How bizzare! Glad you didn't have to get stuck (literally!) sitting next to her for 5 hours!