Count me a member of team SMD is K3W1. I just love the way they simplify the layout for decoupling caps close to ICs. On a perf board prototype, they fit perfectly between the socket pins and the ground bus, and on a home brewed board, you often times don't need to design pads for them.
Although they're too fragile to re-use, I find they also make it easier to change a component value of a part on a perfboard prototype. Overall, a board using SMD parts just looks cooler and more professional. This is of course dependant on personal taste, but small parts just seem to ooze a high tech feel.
One reason to use smaller parts seems to have to do with problems with static electricity. This is something our on-site manager at work told me, but smaller parts apparently are better in this respect. From what I've heard, they might be more susceptible to external ESD, but perhaps they generate less of their own? Does anyone know more about this?
Getting back on topic, some of the higher performance capacitors are/were only available in SMD form. PPS film capacitors were only originally available in SMD form for example, and Panasonic's uber high performance FA series which used to be leaded, is now only available SMD.