Is recycling an answer to our plastic problems?

It's been an interesting couple of weeks and I thought I'd share with you something and ask a question. I've been talking with some people who are involved in recycling plastics....namely PET plastics. I guess I've been a little naive, I had thought that one of the major driving factors of recycling was environmental. Well it turns out that really isn't the main reason...it's money...yep money. In fact recyclers are so driven by the buck that they have been slow to develop programs or equipment/techniques that would allow for recycling of all plastics. It such a cumbersome problem, sorting, cleaning, evaluating, etc.,etc., that most of the plastics we use isn't being recycled. And, as you know, the plastics that are recycled into other products will some day find there way into a landfill.
We had this crazy idea that if someone developed a PET plastic that could (1) Be recycled, (2) Composted, or (3) Biodegrade when it's useful life for recycling is over, it would be good for the planet. Recyclers don't see it that way. They feel that if a plastic, PET for example is modified then it isn't recyclable.
I just finished reading "Cradle to Cradle," an interesting book that suggests that all products should be recycled and when it's life is over, it turns into something useful.....like dirt.

Here's my question.......should we recycle? Should we compost? Should we have plastics that are biodegradable? Sounds like a no brainer, but you'd be surprised at the responses.

Would your answer be, "I'm willing to participate in saving the planet as long as it doesn't hurt how I make a living....!"