yes I've heard these arguments a lot of times before. I still have a hard time seeing this in practice. I agree that it all sounds good, but in practice a lot of times I feel functions would suffice.
However, I'm planning to write a CMS together with a co-worker and since this will be quite a complicated system (it'll be more than just putting data in a database on one side and pulling it out on the other) I've been digging into OO again since that is supposed to work best in complex situations. For some reason though, I still can not really grasp it. I know it's there, since I've heard it from soooo many people, I just can't grasp where the big plus is with OO.