Why is Bankruptcy a Dirty Word Now?

In the six months since Lehman failed, it's become de rigueur to claim that such and such company is "too big" to fail, that bankruptcy is not an option. We really need to put an end to this! Finally, GM is facing up to the fact that they haven't had competent upper management in decades and that the various times they've faced bankruptcy over the past 20 years have been the result of poor decision making. It is not the responsibility of the U.S. government to bailout every management team that fails to perform their duties adequately. What if we actually allowed GM or Chrysler or AIG or Citigroup or Morgan Stanley or Bank of America, etc to fail? What would happen? Would we all still wake up the next morning? My guess is yes, yes, we would. And, after the collective anticipatory shudder, we'll discover that the capital markets have a mechanism for dealing with bankruptcy and that it works well when left to its own means.
Enough with the "too big" to fail argument. Let the poor companies collapse and let the market deal with the remains. We'll survive and prosper as a result.