I prefer Yellow. My main reasons are because being a fan since 1979, minifigs have been yellow. The heads are cheaper, there is a wider variety, and I don't feel like I am using a specific character when I use any yellow head, unlike the character based flesh colored heads.
I can not mix yellow and flesh heads in a MOC or scene. Even to designate a racial difference like humans vs. elves. Younger fans and newer or fringe fans are more accepting of flesh colored heads for a variety of reasons. I'm not totally opposed to flesh colored heads. I'm happy that we have both to choose from. If they were to completely change all minifigs to flesh color, I'd be very angry. Yellow just says LEGO to me.
I agree. yellow does look more Lego like. But i'm a fan of star wars and the hobbit (both flesh colored), so i have a lot more flesh stuff than yellow. plus, the flesh colored figs are more realistic to me.