I think the debate show the huge difference betwen primary and secondary school teachers. I teach secondary school too (well, used to, until this summer), and I definitely do not see it as part of my job. Like MB, I see my job as teaching my subject, and given that I used to see 300 kids a week for an hour at a time, I do not see where I'd get the chance to fit in developing them emotionally, when even knowing their names was a struggle at times!!
At primary though, having one teacher all the time, and given that the children are that much younger, probably means that there is more scope for it.
PSHE is not the answer. I used to teach it, and for my sins, even used to manage the subject... but the danger is that it is taught either by non specialists who know the kids, but are not fully equipped to teach it properly, or it is taught by specialists who are good at what they teach, but do not know the kids as they only see them for an hour a week. I have seen both systems in operation, and I have to say that we have to think what are we really trying to get out of PSHE. At the mo it is a mish mash of all other subjects, and I'm not convinced that it really works... I think we need to totally go back to the drawing board on this one and rethink perhaps the discreet curriculum, rather than adding another thing onto an already awkward scheme of work.
However, like other secondary teachers, I think the basics should be there, and it should be expected to be taught by parents, and not seen as another thing I can add in to my already massive list of things to do!