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I'd say binary thought is definitely just a way people think in order to make our perceptions and decisions more simple. It's easier to make a decision if one is deciding between "this or that" rather than "this, or maybe more of this, some of that, slightly futher to the other end of the spectrum..." and so dichotomous thought becomes useful, especially for people who aren't concerned with more academic ventures.
Dichotomous thought is dangerous, as many dichotomies are quite false, and I avoid it unless I feel it absolutely applies to the situation (which it rarely does). One such example of the dangers is that of "us or them", or "for or against", both of which have been prominent features of GW's war propoganda.
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"Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are even incapable of forming such opinions." - Albert Einstein
"Wise men talk because they have something to say; fools, because they have to say something." - Plato
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