Tor is far overrated. I'm surprised it has any notoriety. Last time I used it, which was a few months ago for a research project, it was quite easy to set your self up as an exit router and capture clear text information for mail, telnet, ftp, etc. It only protects to the extent of the knowledge of the user (like most systems/programs/features). Frankly if your not encrypted end to end and only using IP addresses I would avoid it completely. The added latency of around 19 seconds for just google.com to load from the word go makes it suck even more, however that is not a Tor issue directly, that is from people loading down the network with p2p traffic.
In summary, use only if encrypted end to end and no DNS is utilized, to protect yourself....and order a latte, because your going to be there a while.
Don't believe me? Look at some of the research the Uni of Colorado and Washington have done. Mine was based on their great work.