I think it's a great pity that proxies have got such a bad name. Every one assumes that if you use a proxy you want to hide yourself, or get to sites you're not legally able to get to with your normal IP. I'm in the dilemma that I've got a dynamic IP that I share with a number of hackers here in the UAE. It's not as bad as it used to be, but at one point I couldn't register with a forum as I had a suspicious IP!

I also had a nightmare with cPanel continuously kicking me out as the length of the dynamic IP was shorter than International and kept changing. A static IP here in the UAE is usually only available to businesses at enormous prices. So it cannot be an option. So the only answer for smooth and easy access to Forums and to cPanel was to get a proxy. I've got a paid proxy though that I've been using successfully on and off for the last two years, although not as much during the last year. Not sure why but I'm not having any difficulty with my UAE IP any longer.
I still use the proxy for backup or for when I'm travelling - I prefer to use a proxy when I'm in Hotels and using WiFi's in public places. I also have a major issue when I'm travelling with my commercial e-mail accounts - particularly darn hotmail and yahoo. When I travel both of them require that I have to verify my account as being in a different country looks suspicious to them and usually my alternate addresses (I've changed that now) used to be other yahoo or hotmail accounts, which checkmated me. So if I use the proxy it at least helps a little with that too. I try to remember to get on the proxy here in the UAE for a month or so so before I travel and then use the same country IP in the foreign destinations.
Any way, long and short of this is that proxies are not only used for illegal reasons. They are used for protection (within limits of course as there is no real protection once you're online) and for making access easier when you're sharing a dynamic IP or if your service providers' IP is iffy.
I use Tor very rarely. It's a little behind proxy technology, but I think it still has its uses. More sophisticated Websites won't allow you to register with them though when you access them with a Tor proxy.