Machine vs Hand, the verdict

I have 3 knitting machines (4 if you count my Embellish-knit i-corder), a fine-gauge expensive fancy Brother, an Ultimate Sweater machine (USM), and an Innovations circular contraption.

Here is my USM knitting station.

And my messy Brother station (yes that is a beer bottle wrapped with hot pink yarn, I was being creative!):

I was told by a number of people that the quickness of the machines and all the fun stitches I could do on them would make me never want to pick up my needles again.  So not true.  Hand-knitting and machine-knitting are just 2 completely different things.  Both have their advantages and disadvantages.  Not that you asked for it, but here is my opinion.

Hand-knitting advantages:
Very easily portable
Quiet
Interesting
Coming up with your own stitch patterns is easily accomplished, or picking one out of a treasury is easy to do.
You can increase or decrease in the middle of a row just as easily as the beginning or the end. 
You can increase as many stitches as you want across a row easily.
Knitting in the round.
Seamless garments.
I can knit and do other things like watch TV, supervise children's homework, read emails and browse Ravelry.  I've even figured out how to read at the same time (using a book holder).
It's easy to pick up and work for just a few minutes at a time.

Machine Knitting advatages:
Obviously you can knit an insane amount of stitches per minute
Tuck stitch patterns are cool (only easy to do on the fancy Brother)
Woven stitch patterns are fun (Brother only)
Lace is easy and there are over 500 patterns to choose from (Brother only)
You can knit with 2 colors, hold one to the front and one to the back and have a garment that is one color on the front and a different color inside.  Ribbing looks crazy cool this way, one color shows on the knit part and the other shows on the purl part. (Fancy Brother only)
If you know what you're doing, fixing mistakes can be pretty simple.
Cut and sew patterns work great.

Hand-knitting disadvantages:
Slow
Carpal tunnel
Hmm, that's all I can think of.  Oh wait, here's a good one, it's highly addictive.

Machine-knitting disadvatages:
LOUD!  The USM and Innovations aren't too bad, but the Brother is deafening (I wear earplugs).
Hard to supervise children and knit at the same time.
Requires 100% of my concentration (I can listen to the radio or a book on tape while machine knitting if there is little shaping involved).
You need a different machine for each weight class and that can cost beacoup bucks.  I got my used Brother (fine guage, from lace weight up to fingering) for $500 and that was a deal.  My USM (sport to heavy worsted) was $150 with Joann's 40% off coupon.  A bulky machine would cost me between $500 and up to a couple thousand depending on how fancy it is.
You can't work knit stitches (technically, the machines only work in purl, all you see is the wrong side while you are knitting).  To work ribbing or any knit/purl combination, you need a very expensive attachment that can cost as much or more than the knitting machine itself. 
It takes up a lot of room.  I actually have a whole room devoted to my machines and yarn stash (sewing and spinning stuff is there too).
Set up is time consuming if you don't have it out all the time.
Innovations is just a bad machine.  It skips/drops stitches easily and for a non-knitter this can be disasterous.  It is not easy to fix dropped stitches.  You can't adjust anything on it at all, no shaping is possible, just a tube or a flat rectangle with 42 stitches.  I'm not impressed with this machine.  The only thing I make on it is scarves.
Now the USM is much better than the Innovations, but you still can't do much on it (not like the box claims).  Doing lace, tuck stitch, or intarsia is slower than just doing it by hand.  You still have to adjust all the stitches one at a time before you knit the row.  I'd rather just knit it by hand.  Plain old stockinette is a breeze and you can do shaping fairly easily, and yes, you can do short rows on it (though not as well made as by hand).  You can work cables fairly easily, but you can only work in stockinette.  To work ribbing or purl stitches, you have to drop all the stitches that you want purled and work them back up with your handy-dandy latch hook.  Ribbing is much easier worked by hand.

Holy cow, that's a lot of disadvantages!  I don't want to discourage anyone from trying machine knitting, just know it may not be the piece of cake you were hoping for.  If you want to knit items to sell so you can stay home with your children, you might be better off just doing it by hand.  It may take you longer, but you'll have a better quality piece in the end and you'll have more time with your children.  My favorite place to work is at the indoor playground on base.  Kiddos can play and I can socialize and work at the same time.

If you are set on buying a machine, I would highly suggest trying one out before forking over all the money.  Also remember you get what you pay for.  My USM is ok, but I'm thinking I would have been better off saving up for a standard bed Brother.  The higher quality/more options Brother is worth the extra expense.

I made these on my USM.  It took me about 1.5 hours to knit the body and I handknit the leg hem and waistband and seamed during a TV show.

See my update, 3/11/2009

Comments

[Monique]

Wow you would definitely discourage me if I didn't already own a knitting machine. I love mine. I have a Studio standard gauge and would never be without it. I love knitting on it and when I feel the need to cozy up on the sofa with my crafts, I grab my crochet hooks. You don't have to give up one for the other. I thoroughly enjoy both!

[Melanie Hoffman]

Sorry! I didn't mean for it to end up so anti-machine. They really are just 2 different crafts and I happen to prefer hand-knitting.

[serola]

I cannot speak for anyone else, but I can tell the difference between a quality hand knit garment, and one that has been done by machine.I notice that machine knittime puts a strain on the yarn and it is stretched by a weight to prevent the yarn from falling off the needles. Hand knit does not require this, thus the yarn retains much of its natural texture. I had thought to get a machine, but really, the highest compliment was to save time. Personally, I prefer handknitting, because I can also incorporate crochet, tunisian stitch or even fabric into the garment as desired.

[lulu]

I can always tell machine made. The yarn has been held stretched too long, and loses its full spring. There is something a little bit cheap looking too about machine knit. Surely machine knitting is quicker, but handknit is quality, so why the rush?