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In modern flying (VFR or IFR) there is virtually no need to enter coordinates. If somebody is doing that, they are doing something very weird.
Definitely not so! My "OE" GPS units (GNS 530 and 430 combination) have a 1,000 user waypoint memory bank. Many of these are used and I very often create new ones.
Agree. The 'official' databases often down't show local VRPs, although these are charted. Also, it depends where you are flying. I've flown quite a bit in parts of the world where the official databases are somewhat lacking, to put it charitably. As an example in parts of southern Africa I had to input ALL waypoints and most airstrips manually, the database only has the main airports.
Of course, you don't do this by sitting in the cockpit trying not to make too many mistakes with the rocker switch! Input them at leisure into Garmin MapSource and upload to the unit. MapSource, btw, allows you to cross-check the input against an - admittedly crappy - map. At least this throws up gross errors like the one cumulusrider refers to.