Well, the way Obsidian Abnormal (he's a professional fantasy illustrator and an art teacher) explained it to me is that watermarks will hurt more than help, when he noticed I used them at one point. He said that I should be more afraid of my art not being desirable enough to steal instead of worrying about actual theft, and that the watermarks will interfere with the enjoyment of the art.

No joke, that's exactly where my mind was going! I was thinking for me, as an artist I save and archive artist work that I find inspirational. If there was a fat old water mark all over it I would find it less desirable indeed. Not only for reference but as a fan. If anything, I remember someone saying "if someone steals your art, it's kinda a compliment." I referred that to like "there's no such thing as bad press" sorta thing :P

Honestly... if someone has a problem with an artist trying to protect their own artwork its their problem. I see no reason why an artist should not be allowed to protect their intellectual properties. As a viewer watermarks could be an annoyance, but they do not detract from the art if someone wants to enjoy what is posted and they appreciate the talent and time an artists posts for free watermarks are a minor inconvenience and will in no means, well at least in my opinion, detract from the art that is posted.

I respect it, I understand it but, as time has progressed I'm starting to find it more of a hindrance.
I'm starting to think I will only use it as a deterrent if a particular piece starts being ripped off a lot but other than that. I think I'm going to start fading it out. Now if signatures or stamps are another thing entirely. I think I should come up with a stamp. I feel that might be a semi solution.

I've never had any problems with art theft (since most of my work is commissioned) but my good friend and mentor has had a lot of problems with her designs for tattoos (and other works) being taken and used without consent. I'm not a huge fan of water marks but if they protect the artist's rights (and profit) then they are a necessary evil.

Thanks for the feed back! :D
I've pretty much come to the conclusion that it just depends on what works best for you and your art.
I'm going to try with out for a bit and see how it goes. ^_^