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Not true. Milton was self-published, and quite famous and highly respected for what he did.
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I certainly agree with you on this Tony, but the original post stated "I have seen ads for both" - inplying not true self-publishing, but a vanity that used such in its marketing.
Here's a few definitions:
Vanity - a printer that promises to do much, but usually breaks the spirit of the agreement by hiding behind the fine print.
Subsity - a polite way of saying "vanity".
POD - a printer that specializes in printing small runs as they're ordered.
Self-Publish - the writer organizes it all (though may contract out specific chores).
The problem comes from the fact that Vanity Presses are quick to jump on industry buzz-words, such as POD and Self-Publish.
If you're considering using a vanity press, you may as well self-publish - you'll spend less money to get your books and will have a higher return for each sale.
The POD sites that I've seen seem on the up-and-up, but even their usefullness seems questionable compared to doing it yourself. They don't seem to offer bulk discounts, so you won't get store-sales through them. Local sales can easily be done through your home, with higher return per sale. There may certainly be some situations where they are okay - maybe for sales at Amazon etc?
As to whether to self-publish or to solicit traditional publishers, it depends on several factors.
Format - Novels are especially hard to successfully self-publish, while local histories are tailor made for it.
Business savvy - If you are unable to put together at least a simple spread sheet of expected (realistic!) costs and incomes then let the publishers do it. If you can put together a full fledged business plan (and it indicates a likelihood of success), then go ahead and self-publish.
-Frank
Current Novel: Untitled 
Word Count: 2,879/50,000 
Current Reading:
