We never, ever use miniatures. Ever. Minis are the Stunters of Imagination and the Bane of Cool Combats. They are the Antithesis of Action and the Killer of Real Gaming Everywhere (KORGE).
Imagination is cheaper, quicker, less distracting and better painted. Imagination needs no freaking battlemap. It needs no carrying case, and (most importantly) can't be knocked over in the middle of round 13.
Here's a little story from a few months back. In the interests of anonymity, I'll call the player Paul, because that's his name.
Paul had heard about our gaming group, and asked to join. He's a recent gamer having migrated from computer games, picked up 3.5edition and decided he liked what he saw. He's a great guy, and much fun to be with, so we let him in. He wanted to GM, but (his words) "hadn't bought all the miniatures I need to run the adventure yet". We choked our coke at that, and explained our "no miniatures" policy. It took a lot of persuading that We Are Right and He Is Wrong, especially as he had the rulesbooks on his side of the argument. He'd got a miniature of the character he was playing. Except he wielded a sword and the mini had a spear. And wore the wrong armour. Hey, at least the sex and race was right.
He was much relieved that he didn't need to spend £100s just to GM one scenario. But let's face it, a strict reading of the rules (to someone without a thousand years gaming experience as our group has) would interpret it so. He thought that Only The Rich GM, because at least the players only have to buy one mini at a time.
Now, he's regularly attending Miniatures Anonymous and makes a great contribution to our game.
Long live Paul and long live mini free gaming.