I'm one of those guys who holds 'em for almost the whole season.
The decision to bench a star-quality guy is hard enough. Cutting them outright often seems like a mistake.
I've added Hafner, D. Wright, Huff (three teams), Furcal, A. Jones and Giles to various teams, all early- to mid-round picks that owners just gave up on.
I would say that the only time to cut these guys is after your trade deadline, when you can't get anything out of them.
In roto, you're often chasing categories at that point, and in H2H you need hot guys for the playoffs, so that's the only time to do it.
"All opinions are not equal. Some are a very great deal more robust, sophisticated and well supported in logic and argument than others."
— Douglas Adams (1952-2001)