For those of you that just want "the point" then (yes, read paragraph 4)
I personally have a very broad sense of what qualifies as "chit-chat", which is why I would have to argue for the chit-chat forum to stay. Logically it is a huge liability and I understand this, but are not rumors essentially educated gossip as well as certain threads in the extra discussion ? The key to a successful chit-chat area isn't better mods, because Brandon and the rest of the mods are by far the best moderators I have ever seen. CD is a huge place and I don't know how it's humanly possible to do such a superb job as they do. The key to chit-chat is that it needs to be focused. I agree with the opinion that the chit-chat forum and the main forums aren't nearly the same as when I joined (which is fairly recently); this is because posters aren't sure of what's required of them. I know that sometimes it's easier to simply read the first and last pages of the thread and then reply, but I read every page of a technical discussion if I am planning to reply to it.
With that said, Many times after I read a forum, I realize that I haven't a good enough reason to post as I originally thought I did. Sometimes it is because someone such as Rob B. or Brandon M. or John V. Neun. or Amanda M., etc... and resolved the questions at hand (Sometimes I'll search a thread for certain user names when I'm just looking for information because I know that what they post is 100% top notch). Sometimes it's as simple as the thread taking a turn in the discussion that I don't feel I can help with.
And so I come to the crux of my post.
I am a high school junior.
Having established this, in a thread dealing with low-tech creative solutions and certain team-related activities, I can share my thoughts and experiences. When it comes to a technical discussion such as gearboxes, I bookmark the thread and check later when John V. N. or Andy (Yes I apologize for the liberal use of first names in advance) has posted. In the meantime, I think I'll check my all-time favorite non-technical thread before I leavethe word association (organization, group, get-together, meeting) , which contains the level of technical discussion that I function at.
What was my point? The Chit-Chat threads give the bulk of FIRST (The enthusiastic high-schoolers) a place to belong on the CD forum. You cannot forget that while we may (I admit it) get in the way sometimes, the majority of us, I hope, read and think about their posts as I try to. If I read the technical forums and then go away thinking, that's, usually, a good thing. If I however know that I have no reason to come to CD because everything is discussed at the astrophysical (rocket-scientist) level, FIRST loses something. It's the same as the Scientific American or Popular Science magazines, they're a nice middle-ground between reading journals (not fun at all but very informative and time intensive) and gossip (usually fun, barely ever yield anything of value). I personally would still come to CD to read the technical threads, but as also pointed out, much readership would be lost. Many of the chit-chat people are also highschoolers and if you drive them away, doesn't that defeat the point of the existance of CD?
A solution : Go to the FIRST website. They have a place where a moderated (correct me if I'm wrong) coaches-only discussion can ensue. This is a great place for highly technical FIRST-related discussion.

The second (and final point to be made in my longest post ever ...will not be to make shorter posts.) point as well as the moral to this is that chit-chat is good because it draws students, which is one of the core priciples of FIRST. To inspire school students. I quote my coach "It's hard to get 'em in the door. Once they're they see how great it is, but you have to get them there first.". If it takes a chit-chat thread to "get 'em [us highschool students] in the door", I'm all for it. I realize that posts will surface that are flat-out wrong. This needs to be dealt with. I realize that threads will be made (I haven't created any. The only two I have to my name are two that occured when I left my account online...oops.) that are useless to such a high deegree that many people will petition for mandatory IQ tests and Background screenings to join CD. I realize this. But for the most part (I hope), students (such as myself) are responsible individuals and that they can be trusted to post responsibly.
Another solution. Feel an idividual is posting "just to post?" Talk to a mod. Talk to them. Tell them how to improve their postings. There will always be that .001% that's incurable, but its amazing what words can do.

In short:
Chit-Chat -> Readership -> Inspiration -> Good

So you see, that I see is not the chit-chat. It is poor posting habits and too many forums (see 1st paragraph) that have a grey-area that would allow chit-chat to seep into them if the chit-chat forum was abolished.

But that's just the point of view of this one junior who's not had to put up with being a moderator, so he doesn't know how hard it is (although he assumes its pretty trying at times) that's got such a bad sinus cold that he thinks he's just going to keel over on the keyboard. I'm sure I made some repititions here, so PM me if I need to change this to be less long-winded and if you have any suggestions to that (or other) ends. It comes from living with a lawyer (though that's not a bad thing at the end of the day).