I agree with the idea that X10 is definately inferior to zwave or insteon, but it is a great starting point.
And it is a HUGE price difference (To zwave) and still a large difference to insteon.
The cheapest I could find zwave parts was like:
$40 - $50 per module (plug in, screw in, or receptical, as well as switches and such)
$120 - $150 for a controller/interface
I bought my X10 gear brand new just a few days ago, for:
$5-$8 per module
$10 for RF Reciever
$20 for the controller/interface
That's a HUGE difference in price. I was able to spend $150 and hook up lighting control in my whole house including the controller, not to mention a few pieces of security gear to experiment with. (1 controller, 1 rf reciever, 3 remotes, 9 lights, 3 door alarms)
With ZWave the same setup would have cost me $740
Sure it might be flaky, but I can use it to experiment, and get used to home automation. When I want to invest in a "proper" setup, I can drop a couple grand on it. But for now, the $150 I spent lets me get wife acceptance factor, then I can argue "Ok, now that you like this, see how this is a bit of a pain, and how this doesn't work quite right, well switching to this technology a few pieces at a time would solve that" and I can get buy in on the larger investment
So I totally agree, if you have the money to spend, zwave or insteon is superior. BUT don't discount X10 as an option, especially for a "getting your feet wet for minimal expense" option lol.