Since this thread is all about how much power should be in the hands of the DM, I'm gonna exercise mine and make a new rule right here and now. This is going to be the single biggest rule in the game, superceding all other rules. It is gonna' be so damn important that it even overrides Rule 0! I'll call it "Rule -1" and it goes like this:
Rule -1: IF YOU DON'T LIKE THIS EDITION OF THE GAME THEN PLAY ANOTHER ONE!
Jeebus, people! I know that the boards are here to discuss stuff like this and the "Edition Wars" are all part of the territory. But seriously, this is kind of ridiculous don't you think? If you've got a couple problems with 3E like you don't like a few spells or the way that grappling works and so forth, fine. If you think that the absolute core of the game runs counter to everything you hold dear about GMing then DON'T PLAY IT.
I know. I can hear the cries already, "But it's impossible to find players who will play anything but 3E! I HAVE to play it if I want to play!" Well then either figure out a way to make changes to the system to make it work for you and post them here so that others in your situation can use them or just do your best to find aspects of the game that you DO like. But all this, "I long for the halcyon days of yesteryear when I was young and in love and roleplaying was pure and rules-lawyers didn't exist..." is just tiresome. Even if it's true it is doing no good at all do vent about it here.
If previous editions of the game were better for you then go play them. Nobody is going to stop and if you stop telling folks here that they're having badwrongfun with 3E then they won't berate you about it either. If it is hard to find players then you'll have to try harder and it might take longer. But it will still be better than playing a game you don't like (or worse yet, running a game you don't like).