Depends on the crowd. Our $0.25/$0.50 games often have hands that go to showdown with $100+ pots, sometimes $500. Yet, every time someone says "Should we just do $1/$2 next time?" they get poo-pooed :)
Can relate. We mostly play 0.1/0.2 or 0.25/0.50 but I've seen a friend of mine spend 700 bucks in a game while the rest, at most, 100. It makes it very unbalanced but everyone finds it fun to see the big stacks guy lose it all.