Also there is the issue of too broad text chunks known both in typography and usability for making reading more difficult.
Apart from that I tend to agree with you.
http://blog.fawny.org/2005/09/21/measures/
In essence, most studies indicate longer line length leads to faster reading. But also, people on average seem to prefer having a moderate line length over a longer one.
In my view the latter measure is more important. I'd rather have a layout which is more pleasing than one which is faster to read.
(Of course ideally you have a variable-width layout so the reader can choose himself)