Ok, seriously now...
My thoughts on bouncing and generation loss...
I finally had my Otari half track set up this Spring and it was a total godsend. It's set up for +9 operation on ATR tape and if used correctly, it records a near mirror-copy of whatever I pipe into it.
(Quick note on my preference for +9 operation and ATR tape for mixdown: Most of the music I work on is fairly "delicate" and quiet at times, and I've found that this combination preserves the dynamic range and HF detail of my recordings extremely well. Your Mileage May Vary, but for my situation this thing is perfect.)
That said, of course there will be noticeable generation loss when you bounce back onto a narrow format multitrack, but I've developed a few techniques to mitigate whatever loss may occur.
First, when recording onto the halftrack, I monitor on its repro head and A/B my mix and the tape monitor to make sure I'm going to get what I want to hear. This sometimes requires a little EQ adjustment on my mix but not very much.
Second, when I'm bouncing back, I also monitor the repro head on my multitrack to make sure I'm getting the sound I want. I'll do a trial run first where I set levels with the tape rolling and turn dbx NR on and off to see which setting produces a better sound. Rewind, then lay it down "for real".
With some patience, you'll notice only the slightest bit of generation loss. It sometimes helps to boost the upper mids and high frequencies in your mix just a little bit so that detail will survive the transfer more intact.
I personally prefer to do 'external bounces' because I can always go back and change something and redo the bounce later; with internal bouncing you inevitably erase the source tracks and you might find yourself wishing you could redo the mix... at least that's what I've found in my experience.
I wrote a bit about this in a blog article I wrote in September, which I'd really like to share (*please* offer criticism or suggestions if you have any). It's right here:
Tracking and Mixing Tips
Hope this helps! I also hope that this wasn't too didactic; I'm just sharing what I know