I really hate it, in all sports. The entire sport doesn't revolve around one tournament - especially when it only comes around once every four years - and especially when it could well be as big of a letdown as our last one was. I do enjoy World Cups, but I'd honestly rather they didn't exist in a lot of sports, simply because of the mindset that goes along with them and building for them. You should always do your best, with selection, to win each and every game - IMO it should actually be a law within the ICC rules. You basically end up with four years of games that mean nothing really, along with tournaments against teams that have rested four players and tournaments where your own side does the same.
You're right - people won't think back to 2008 when their team gets bundled out in 2011, but I also don't think people would look back to 2011 (if they made the semi finals, lets say) if they lost 7 games straight in 2013. Games should matter, or they simply shouldn't be played, IMO. Only having games that actually count once every four years and using the other games to prepare for those is a complete farce.
Of course they matter, though - they're the only way you're going to build a good side for the next Cup. Every game is indeed vital. Not winning it as such, but cricket's always been about more than simple win\lose in any form, anyway.
The way I've always looked at it, if there was no World Cup, it's highly unlikely ODIs would ever have started being played much. So I don't know whether ODI cricket would be better without the tournament, really.
I have said, plenty of times, that I'd like to see a biennial World Cup, as that tournament is, as Matthew Engel put it in 1999 when I first heard the suggestion, "cricket's most glittering showpiece". That would mean the "won't be around for the next Cup" period would be significantly shorter. I've also said, of course, that there are far too many ODI tournaments, especially one\two-round triangulars and 2\3-match bilaterals, and that seeing 4 or 5 players rested does mean they fail to remotely match the credibility of tournaments\series where a stronger side is put-out.
Nonetheless, I'm always in favour of aiming for a World Cup ahead of trying to win a series such as the just-concluded. Even if it does mean trying to look 4 years down the line.