Ok, I don't really see what the big deal is. My son has his "bupie" until he was 3. I never let it get all nasty and if it was dropped, it didn't go back in his mouth until it was washed. Children who use pacifiers that long don't necessarily have emotional issues, as one person stated. It's called a security item. And snatching a security item away from a child before they're ready *can* cause emotional issues.
Now about the "oral fixation" thing, think about this; as a baby and into my toddler years, I never had a pacifier or sucked my thumb. My mom told me I just wasn't interested. So no oral fixation as a child....But i've been a smoker for 8 years. My husband, on the other hand, had a pacifier until he was a toddler...Was very attached to it. And he has no oral fixation whatsoever now.
My younger brother is taking a psychology class and is learning about oral fixation. He said mine might be due to the fact that I breastfed until I was 18 months old. Seriously....So if you're going to blame future oral fixations on pacifiers, you can go right ahead and blame breastfeeding, too.