I really have no problem with ATEs. In fact, I wish more games had them! Watching characters interact with everyday stuff (as opposed to the main quest) can make them so much more endearing than just watching them step in during mandatory plot points.

The only real criticism I have of ATEs is that I always get a bit uptight if my party isn't actually all "in" the party at the time. But that's not so much a criticism as me being obsessive-compulsive. I'm the kind of person who gets agitated if someone replaces a book on my shelf out of proper order (alphabetical by author, chronological within each author).