Keep in mind the real interest rate. Currently, the U.S. 10-year T-bill yields 2.8%, while inflation is 1.5%; that means the current real interest rate is a paltry 1.3%. Agreed, feeding money out to the banks via the Fed just feeds the banks. If, instead, the government actually used that same money to pay people to do stuff, a lot of stuff could get done, people could be put to useful work (repairing infrastructure, teaching kids, researching non-petroleum energy), increasing GDP, increasing tax receipts, and making it even easier to pay back those T-bills in the future.
However, that means the government (mainly Congress) needs to take its thumb out of its collective ass, learn some math, and commit to spending some money until we've got something more like full employment, with the economy running at or near potential. Right now, even with all the money the Fed pushes, very little private investment is happening (except in that casino we call the stock exchange and the shadow banking system); with returns this low, there's no crowding out. Resources are underutilized by private corporations (although, via the Tea Party in the House, the Chamber of Commerce screams, "Hey, I was gonna use that!" about any attempt to spend government money).
I'm only afraid that we've lost the best opportunity: It wasn't more than a year ago that the real interest rate was negative, expected to cost less to pay back than the money was worth at the moment (my wife bought a new car at an effective negative interest rate in May 2012), not even taking into account the increase in GDP and tax receipts.