Yes - very true. It has caused us to re-think lighting a little bit in our home, dedicating a couple table lamps for the night-light function vs. just dimming super low. In the kids' rooms, we use table lamps with lower brighness bulbs just for that purpose. I also have some rooms like the master bath suite and kitchen where there are a couple circuits - both rooms have a pair of can lights that have fluorescent fixtures - those will soon be converted to LED so I can just dim the middle pair pretty dim and keep the others off. It's not quite the same as the soft orange glow of having an incandescent down to 10% but it's manageable. If I really need mood lighting, there's always candles still!
In the pretty near future, I actually want to change the kids' table lamps to be Philips Hue bulbs - that way I can change colors and simulate sunset and sunrise colors very gradually over time - with HomeSeer integration I think this will be really cool for them - just wish they were a little cheaper, and direct wifi rather than needing a bridge.