I use the teflon tape on both bottom bracket and pedal threads. It is a good non-messey thread lubricant and filler. It also helps prevent seizing due to dielectric contact. I have had no problems with creaking, thread loosening, or disasembly where I have used it. It is fairly cheap, easy to use; and available at almost any hardware store.
The arguments that I have heard against it all seem to be based on the fact that it was designed for plumbing. These seem to be the same people who pay the same price for six ounces of a citrus cleaner at a bike shop that they would pay for a gallon of the same cleaner at Home Depot.
Steven Snider
steve.snider@comcast.net