I have run into a problem at work that seems completely silly to me, but feels even sillier that I can't give a good answer to it. I have been put in charge of replacing all of out our edge switches (predominately Cisco 4503's and 4506's with 10/100/1000 blades) for a medium size organization that services 350 - 500 clients. I want to replace them with either new Cisco 4506-E's or Catalyst 3750's with stack-wise technology. The cost will be expensive, but we have more than enough in our budget to pay for it. The boss and another network engineer want me to cut the cost by buying a lot of 3560G's (10/100/1000) and daisy-chaining them together in clusters at the edges (in some areas, we could have as many as five switches chained together). I don't believe this is the right solution, especially from a cabling standpoint, lack of shared backplane speed, etc. However, I have not been able to fashion a good enough technical argument against this practice and I have not been able to find any good information concerning pros and cons of daisy-chaining switches from my research on the internet.
Is daisy-chaining switches en masses a better idea than I am giving it credit for, or are my suspicions correct that this is not the way to go for a medium-sized to large deployment?