I like using "cash" as in spending only the money you have, and not using credit for daily purchases. I am not really a "spender" though, so my purchases are limited to things like groceries, gas, the occasional haircut, now and again a fabric trip. :D All of these things are at LEAST $40-$50 a shot...and if it's the weekly trip to the grocery, over a hundred easy. I just couldn't walk around with that kinda money on me.
HOWEVER, smaller things like a pastry and coffee, out to lunch with friends, stuff that's $20 or less I would buy with cash. And I think it's more accurate AND good manners for it to be counted back.