The network traffic caused by sending in dynamic sql statements should not be anything to worry about. If it is, then you must still be running on 10 megabit ethernet!

As long as you guard against SQL Injection, dynamic SQL can provide AMAZING performance INCREASES in cases where you have data value skew, widely-varying input parameters, open-ended search, paging, etc. It is a tool I go to regularly with clients.

On the other hand sprocs can be a boon when you don't have the above issues and/or are seeing compilation waits (which is a true rarity in my experience).