isnt there a huge fee for buying with an ATM?
Out of curiosity, what's the premium on those things?
They recently raised the rate from 5% to 7.5% so it's getting less affordable.
I always justified the 5% by saving the hassle and expense of transferring money from my bank to the exchange, the (albeit small) exchange fees, and the time wasted on hassling with the banking and transfer process. Often the money saved by not waiting a week for an exchange deposit more than pays the fee. ATMs are fast, easy and very suitable for small (less than 3 coins) purchases. I still will use an exchange for larger buys.
I also treat part of the fee as an insurance premium against having to leave money (Bitcoin or fiat) on an exchange, exposed to the internet. I lost 50 bitcoins at MtGox. Once bitten, twice shy. Offline paper wallets FTW.
An added bonus is that the ATM coins are anonymous (or should I say pseudonymous?) at least until you crack the paper wallets and expose the coins to the 'net. This is probably worth a few points to many people.