In the words of H.L. Mencken, "for every complex problem, there is a solution which is simple, neat, and wrong." Running your credit into the ground is an example of this type of solution. Credit reports are, like it or not, used for judging your suitability/risk for jobs, insurance, and other tasks not related to taking out a loan. Damaging your own report may be far more costly than you realize.
In general, I do agree with you about paying off your debts and not overextending yourself. I have credit cards, but I pay them off every month. When I buy a new car (which isn't often), I pay cash. However, what's right for me isn't right for everybody. If I needed a more reliable car in order to get a job and didn't have the cash, then I would take out a loan and pay it off as soon as possible.