I like the revived discussion on the topic... I don't have much of anything to add, because I still recall the discourse of the previous trip, and I'm sure my peace was made within it:
http://www.tfproject.org/tfp/general...ght=panhandler
Like anything at all, there are times when I empathize with the disenfranchised, for there was a good (poor) time when I was right there with them. If I want to get to know the person better, I'll do so; I won't give them money, but my time and help are usually there to offer. To give someone on the street a few sheckles is just as comparable as giving a close friend a 5-spot inside a birthday card--it's an afterthought with little to no intention of communing with the person really.