"-2 dex. that is one less ac, reflex save, initiative, dex based skills."
More than counteracted by the Strength bonus. And with a net +2 bonus in stats, they can offset the Dexterity penalty.
"-2 int. less skill points, severe blow if you want to be a wizard"
You don't choose a half-ogre template to debate philosophy or be a brainy wizard. If you're worried about skills, use the net +2 stat points in Intelligence instead of Dexterity.
"-2 cha. penalty to charisma based skills, severe blow if you want to be a sorcerer"
Likewise, you don't pick a half-ogre template to win people over with your stunning personality. Half-orcs get -2 to both Int and Cha to get a lousy +2 to Strength...this is hardly worth complaining about.
"Large size: -1 to hit, -1 ac, equipment costs more, hard to fit into certain areas (dungeons anyone?)"
All that is more than offset by greater damage (larger weapons do more damage than normal-size ones) and reach. Not to mention the +4 natural armor bonus to offset the trivial -1 AC penalty. Most dungeon passages are 10 feet wide, and the half-ogre can reach over companions to attack (thus increasing the number of PC's on the front line of combat). Even taking a -4 AC from "squeezing" through a 5-foot space, they only have a net -1 AC thanks to the natural armor bonus.
"Giant blood: how often is this a good thing? pretty much never."
The player of the half-ogre in my campaign is very glad for her immunities to Charm Person and Hold Person. The equivalent monster-affecting spells are 3 levels higher.
"Favored class barb: puts him directly into his fighting role"
No more so than a half-orc (or most demihumans, actually). And unless you prefer multiclassing, irrelevant.
"level adjustment: +1, now this is a huge hit, truely."
At 1st level, yes. By 5th, it's a trivial adjustment.
For reference, here's a link to the half-ogre in my campaign. It's heavy on the heroism (players started with 36 points to assign to stats). The latest writeup on the website shows her at 8th level (10th level equivalent). She averages 21 points of damage per swing...and hasn't even raised Strength since character creation.
http://www.peakpeak.com/~fedifensor/games/dnd3e/umfang.htm