Is DHCP recommended in a Microsoft 2003 server environment?

Okay experts, I have a general best practices question.  Let me preface this by saying that I'm a big believer in using DHCP scopes, reservations and options to manage the network.  It saves a ton of work when done right.

The problem is we have a longstanding client who's been convinced by someone else that we should not be using DHCP on the network.  The client has a total of seven 2003 standard servers and 80 XPpro desktops accross 4 locations and all are managed by us.  The network was humming along when DHCP was in use, but now it's a headache to manage.  Time servers, voip phone options and other services are much more difficult to roll out and manage.

Am I crazy if I insist to my client that DHCP be re-instated on the network?  Isn't DHCP the best way to manage ip addresses on a network?  Am I missing something here?

If I'm wrong and any of you can give me a few good reasons why we shouldn't be using DHCP then I'm all ears.

Thanks.