In order to buy a version of TurboTax that would handle my federal and state returns, they wanted $140. I can't stand the thought of paying for the 'privelege' of filing my tax returns.
You aren't paying for the privilege of filing your tax returns; you are paying for the time you would otherwise spend researching, preparing, and filing your taxes. Was the time you spent worth the $140? (I am not saying that it was or wasn't, but the answer should be what drives your decision on if you do your taxes by hand or not.)
By the way, you should be able to purchase TurboTax for much less than $140. The "Home and Business" edition, which should cover the most complicated returns that an individual would normally need (home office deduction, stocks and options, property sales, etc) lists for $110 and can be found for about $80. If you have a simple tax situation, the even less expensive editions would suffice. Whatever the cost for tax software, the question of the software cost vs. the value of your time is what you should focus on.
Of course the question of why our tax system is so complicated that companies like TurboTax can sell software and find plenty of buyers is certainly valid.