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Now standing outside for a day or two waiting for a midnight release is a waste of time IMO. Walk in at 11 O'clock and get it. There is more than likely going to be one there for you if you preordered it.
I pre-order the big hits usually if there's a limited edition. Like with MGS4, my most recent pre-order, worth the bonus disc and such.
As said here, it's only worth pre-ordering if you're just a complete whore for that game or want to get some kind of preorder bonus. For instance, the last two games I've preordered were Metal Gear Solid 3 and 4 LE.
Preorders gauge interest, and simply put, the more preorders a retailers receive, the more copies of that game that retailer will order. Ordering the big games, while it will guarantee you a copy on release, isn't really worth it. You're better off preordering your favorite niche or lesser known title, because it will get the game a little more exposure, and support the developers more, because they'll sell more units because the retailer has to cover their preorders and then some extra copies to sell as in-stock new product.
The only time I really NEEDED it was for Halo 2 and the Xbox 360.
Then when it comes out you just walk in and pick it up. End of transaction.