I recently attended a talk by Shane Matthews, an engineer who worked on the Super Soaker and Nerf Guns, and who has gobs of patents and products out there selling. He asked, "If you only have $10-20k left, should you get a patent, or should you invest that in marketing?" The answer was marketing, since getting a patent can easily cost that much.
I asked him how many of his products have patents, and he said about 2/3 don't have any patents. He said lots of times patents don't make sense, like for many types of toys, and for things that are only going to be around for a few years. By the time your competitors copy you, the fad is over.
Ok, so as a small-time inventor, I don't need a patent. Great!
Shane went on to say that the only reason he's able to license products to manufacturers without patents, is because he has a long history with those manufacturers. He said it's extremely unlikely that any manufacturer will even talk to you if you don't have a patent. And the Super Soaker and Nerf Guns? Well there are 30 patents on some of the Super Soakers.
For someone looking to license their technology, patents look like a necessary evil.
What about someone wanting to form a company around a new product? In this case, I believe the smaller the company / investment, the less value patents provide.