I prefer to work with air dried
wood. Here is a discussion on the matter from one of my favorite woodworkers.
http://www.fullchisel.com/blog/?p=393 Also all kiln dried wood is not equal. Cooking it at 185 degrees F is a lot different than cooking it at 120 degrees. Letting it air dry for a time and then putting it in a kiln at low temperature with controlled humidity to finish it off, and then letting it stabilize to ambient humidity is a lot like air drying
Kiln drying southern yellow pine (I believe it has to get over 185 degrees for a time) cooks the resin and makes it hard. Otherwise, it will never harden. Whether or not that is good is a whole other debate.
There are some tropical woods that are said to be extremely difficult to get dry without a kiln.
Kiln drying serves to speed the process up. When used to "finish" wood, it can help ensure a predetermined moisture level.
Some woodworkers such as luthiers may let their wood air dry for a decade or more before using it.