database connection pooling: overrated or essential?

So, I've been chewing on the idea of database connection pooling lately. We're running into some performance snags, and I'm starting to wonder if how we're handling connections right now is the problem. Some of the team are all in, saying it's a must-have for any production setup, but others are saying it just adds extra hassle if we don't have tons of traffic all the time. What's your take? When has connection pooling been a lifesaver for you, and when did you decide it just wasn't worth the fuss?