Insurance is really just legalized gambling. You're betting you're going to crash, the insurance company is betting you won't, and as always the odds favor the house.That makes perfect sense. The thing I see a bit differently, and it's not right or wrong:
If I have hull insurance, I am, in effect, paying to replace my plane (through my premiums, over time). And, clearly, paying much more than that (somebody is paying for those big skyscrapers, salaries, advertisements, and dividends). Actuarially, and figuring the opportunity cost of my spent hull insurance premiums, I'd be way behind.
My preference would be to buy less airplane because, for me, the marginal utility of more airplane is not worth the marginal cost of that additional up front out-of-pocket expenditure plus the hull premiums. To many others, the additional marginal cost is well worth it.
The plane I have now is the first I've ever had hull. If it was uninsured and I lost it, I'd be back to ultralights... nothing inherently wrong with that, but I'm enjoying this different aspect of flying at the moment.