Kevin,
yeah, i hear what you are saying. My take on things are this: any audio artifacts I add during the EQ process are by far insignificant as compared to the benefits i get by judiciously applying EQ. The degredation is commonly talked about, but i for one have never heard horrible artifacts coming out of my inexpensive symetrix/altec eq's when used within their limits. For some types of sounds, i would want my mic's/placement and instruments to get me there 100%. But with my apartement room acoustics, limited mic choices, and less than stellar quality of instruments, that is not a reality. So EQ gets me alot of the way towards my audio objectives...and in a nice way. The audio artifacts that are encountered are probably more of a worry for pro engineers with a pro set-up. When your signal chain is that detailed and revealing, it makes sense to worry about such things. But for now, the eq helps more than it hurts...i view it as part of the whole 'tracking sound', and not just a last resort. I think if one spends some time and know's the limits of their hardware, and they are not careless with it, you cant really go wrong with tracking EQ.