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If half customers realized Username and username were different, I'd be thrilled. Cookies? While we don't use them, it seems like the most successful example of thwarting progress for little apparent reason I can think of.
Query string is fine in most cases - we use it - but for users on Mac/IE it breaks sometimes. Not even in a pleasant way - the user gets a blank page.
Like any tool, it can be good, or bad, in its use. People are much more likely to run into violations of privacy from enabling ActiveX online. A little education goes a long way, and somehow the message didn't get through.
I can provide a 100% personalized experience if the cookies are turned on. All that need be memorized is username and a couple of other variables. Beyond that, I don't know of any other way to promote a high level of interactivity without requiring lots of input from the user. (PHP Sessions uses cookies as I recall)...
-doug