I like cut scenes, unless they reach Japanese RPG proportions.

However ; I'm really bugged by conversation cutscenes where your character is just a spectator - I don't mind not being able to control what they say or do, I just don't like it when they don't say or do ANYTHING.

Guild Wars is an example of doing it well - you don't even get to choose your character's voice, but they wisely chose generically cool ones and recorded just the right amount of lines for plot progression without dragging on.

I have to give WAR the boobyprize, for not even making the scripted scenes cut scenes !
Darn annoying in PQs that there are no cutaways to the action - early on you can miss giant bombing runs & 50ft warpspace portals because your camera is busy engaging a lowly Squig, while later on the PQ areas are so huge you can be screens away from dragon battles & dark lords riding dinosaurs.