Winter tires not only give better traction for driving but more importantly they help you stop quicker and in shorter distance. AWD will give you better traction, but it is no good if you can't stop. When it comes to stopping, all you can rely on are the brakes and tires.
I see the costs of winter tires as cheap insurance. Any fender bender costs easily over a thousand bucks these days.

 

Amen to that. $200/tire is not crazy considering what a snow tire can do for you. I had Blizzak's on my Evo and they were incredible, so that's what I'm going to run this winter as well.

 

All seasons are fine as long as you dont drive stupid. You know your area best so just be smart about what shoes you buy. If you get non-stop snow 3 months out of the year I suggest dedicated winter tires, but I run all seasons every year here in NYC without any issues.

 

I work in the tire business here in Canada and I can tell you that winter tires are a must if you are doing any snow duty OR your temp drop to below 7C. All season and summer tire starts to freeze at that point and you lose traction and its like driving on hockey pucks, hard rubber.

Definitely worth the $800 investment/insurance for a good set of winter tires.