Get Rid of the Performance Review?

In yesterday's paper there was an AP article about a new book called Get Rid of the Performance Review! by Samuel Culbert. A couple quotes from the article stood out to me:

• Want to lower morale, reduce productivity and undermine the relationship between the boss and his or her subordinates? Give an annual performance review.
• Pay and performance are merely tools used to intimidate employees.
• "It is the most pretentious, fraudulent, ill-advised exercise taking place at companies, and I can't understand why," Culbert said in an interview with the Associated Press. "It does nothing but cause angst and anxiety."

I must say this article has me interested in reading the book. We haven't mandated annual performance reviews at Granger for several years for many of the reasons cited above. But I've been contemplating bringing them back.

I'm curious--what do you think about these statements? Tell me your positive or negative experience with performance reviews.