I will almost never use source unless what I'm installing is (or nearly) mission critical. An example would be that though I would install a kernel source from RPM, I would only install a new kernel from source. Or, I would install from source if there wasn't already a pre-built package like an RPM.
That being said..
The ironic thing is that when I'm running through a configure script and find that stuff is missing, I'm usually tripping over myself to use yum or urpmi (depending on which of my boxen I'm installing something on) to fill those dependancies. Sometimes, I'll spend more time installing dependancies that the source code requires than the source will take to compile. Heh.
One problem with compiling and installing packages from source is that in order to maintain any longterm manageability of your /usr/local directory... you have to setup some way of being able to assure an easy uninstall process.
I tend to solve that by implementing my own epkg type build process where everything gets installed into it's own directory ie --prefix=/usr/local/build/packagename-versionx.y.z
and then creating symlinks in the real /usr/local/[bin,etc,lib,include] directories...
I used to like to compile everything from source... but in many cases I've found it to be way more time consuming.