It is a great idea to book privately if you can - we haven't used a travel agent for years.
It might take a bit more effort trawling through a few websites instead of just popping into the local Thomas Cooks, but I actually quite enjoy that part - and I usually end up paying quite a bit less than I would have if I had gone with an operator.
It also means that the room owners ends up getting a better rate than they would have if they were with a company. Of course, there is a lot more work involved for them as well, what with advertising, managing their own websites, taking bookings etc.
However, the downside seems to be that the companies are getting fed up with us DIY-ers and it is getting more and more difficult to find cheap flight only tickets. Still, that suits me as I prefer to drive across anyway!!
Stuart