Contracting – how do you feel about it?

I live in a high tech city. I think most job offers are contract-to-perm, then contract jobs are second, then full time positions are last. This comes from 8 years of living here. I would say that contract jobs last in the range of 3 to 9 months, generally. One clear advantage is the experience and pay, however, unless one is qualified to remain in this nitch, one does not have the security a full-time job has.

My take is that, with contract jobs, you retain your independence, however it can get lonely. Contract-To-Hire as a balance of the two.

But My question is, what do you all prefer and why. Thanks!