Not to state the obvious, but I think this depends on your individual situation. I chose the MA program because of where I currently live (no schools offering Phd programs around here). If I lived closer to UVA or some other school allowing for a "condensed" MA directly leading into a Phd program, I probably would have gone for that. Though, now that I am completing the MA, I do not think I could have skipped it. I'm very happy with my decision and I'm more than delighted with the Pell grants that I receive each year. It has been the cheapest route for me. I've also been pleasantly surprised with the unique learning opportunities, intellectual stimulation of the faculty, and the multifaceted approach of the courses. For these reasons, I believe I'll be a more versatile literary professor because of the MA.
The hard part will be finding a decent (and close) Phd program when I complete the MA. Anyone ever uproot your family just so you can get your Phd? I HATE the thought of online Phd programs (not a snob, just love the classroom). Well, maybe we'll move before that time! Good luck!