A negative view of PhD holders seems to be confined to the Valley. I am far removed from the Valley and all the PhDs I work with are some of the more brilliant people you'd ever meet. Great at their job. Extremely innovative.

And yes I call them Dr. So-and-so and no they didn't insist I call them that or anything. I just automatically address them with their title as a sign of respect. If they say "oh call me John" or whatever then I'd adjust accordingly.