There is no doubt that ad hominem accusations are fun and tempting - even rhetorical masters, such as Deirdre McCloskey, lean on this tool and pencil "opponents" into association with bad company.
But presumably there is more behind such attacks than simple smugness - we have finite resources & facts, so taking in the whole situation that the argument is embedded in is one additional source of information. Yes, often overused, yes often without thought, or without even trying to address the underlying issue - instead sweeping generalizations and insults are used. But I believe there is some information there, sometimes.
For example - professors, including those promoting free markets, have tenure. In one sense - big deal. We live in a society that has tenure as a characteristic. But it means that a tenure holder can focus on the long run without being as concerned about the short run - one of the key reasons for tenure, and in this case this fact is of interest as the free marketer prof does not have to worry about the pain of job dislocation involved with change. This is a fundamental fact - one that can be overblown, but there it is. Surely this is a legitimate consideration, is it not?
Strong libertarians also claim taxes are a moral evil, but the actions of strong libertarian professors suggest that the use of "evil" is hyperbole: they live off taxes. This suggests they think taxes are BAD but probably not EVIL. It makes it sound like they overstate things on purpose, or at the very least have not thought through their actions (or have a very low threshold of what "evil" is - diluting the use of the term). As such, it weakens the speakers statements in other regards: are they overstating again? Or do they really have righteous anger here? How much should I discount? In particular it undercuts their specific claim, in general it calls the level of their language and appeals into serious questions - like the person calling everyone a Nazi, racist, and homophobe: who takes them seriously? Have they actually met a person who actually was one of [insert hateful/hated group X]
If taxes really were EVIL a strong libertarian would work for a private think tank, not a public university - they have the ability to do so, they write well, they have the bona fides, they are smart. But they choose to live off taxes as the position they have is very nice - their actions says "taxes bad, but not evil". Sure, they grudently pay taxes - otherwise serious consequences come down - but if they really believed it was EVIL they would not live off it. Instead they see the position of professor as sweet and rewarding to them, and the fact that it is tax funded a sad reality of our society but one that we must live with. I see no evidence they really belief in the rhetoric of "evil" they slopply use {if I am wrong, please let me know}.
For these reasons ad hominem is valid, sometimes, it brings in the context of the argument and adds information. True, the fact it is easy and fun makes this too often used, but as we have few resources and little data should why not use this - carefully, and prepared to explain the attack (which, if legitimate, is a shorthand for a bundle of evidence that can be pulled into the light for further discussion), like we judge and use all other data?
Discounting ad hominem is very "un-Hayekian"; Hayek recognizes that we should use all the information we can, and let the many consider all the information they have in judging. Ad hominem - when used honestly - is a short cut to pulling in the context. Like all rhetoric it can be misused, overstated, blah blah blah. So what? Isn't this a complaint about the listener (either who you are arguing against, or some 3rd party "listener" or "reader"?) and their intellectual honesty - not the tool as such?
I like ad hominem, when used honestly - and I think this is one reason that people tend to use it, they implicitly know that this brings in the context and more information. As long as "the shorthand" of ad hominem is backed up, when called on, this seems like both an useful, and legitimate, tool.
Note: this post is a slight mutation of a comment to the "Cheap Shot" Cafe Hayek posting mentioned above.