We have since learned that the world has a great appetite for US Government debt. Is permanent and increasing debt OK? Intuitively, we know it isn't. Our intuition is right.
Many Americans want the government to spend on them and their causes. Can't we just pretend that debt (or taxes, or inflation) are essentially costless, or the cost falls on someone else? As Obama might say “yes we can.” Unfortunately, believing a falsehood does not help.
I think the only answer is to address spending, primarily entitlements. The entire idea of being “entitled” is wrong. I accept that those who have put money into a program, for example social security or medicare, should get their money back. I believe in compassion, but not "public compassion." We should get the government out of the charity business.
Debt is not fundamentally wrong; as you pointed out sometimes procuring debt is necessary. However uncontrolled debt is absolutely obscene and dangerous in the long term. Hard to meet our current/future spending obligations with $19 trillion (Growing) in the hole and expect a healthy/thriving country/economy.