I can understand why an airline's offering IFE is not that important to some, but I don't understand why some think it should be unimportant to all. Not everyone feels like dragging along, let alone owns, an mp3 player, pda, portable DVD player, Kindle, laptop/netbook, etc., along with the requisite connections and backup batteries. Add to the mix a book or two and you've filled half your carry on. It would be chaos if everyone brought along all that gear and tried to use it at the same time. In any case, many airlines have a limited number or no electrical outlets in economy, which are usually necessary for the average non-netbook laptop to run for more than a couple of hours.
IFE is a factor for me as I sleep very little even on longest transpacific flights. I only choose airlines that offer AVOD on the longest leg. The Asian carriers offer current Chinese, Japanese and Korean films that are months or even years from being released in the US, and they are often far more entertaining than the typical roster of popular US films based on comic characters. I do bring along some alternative entertainment for variety, though - a couple of books and an mp3 loaded with music and audiobooks.