From a purely personal standpoint, I struggle with the dairy issue. On the one hand, I truly love most dairy products, especially cheese. For a long time I used low fat cottage cheese, greek yogurt (2%) and fat free ricotta as central protein sources in my diet. From the CR perspective, this is ok. From the Paleo perspective, dairy is suspect to begin with, and pasteurized low fat or fat free dairy is especially so.
Our ancestors indisputably did not eat low fat or fat free dairy products. I also do not believe saturated fat found in dairy is a great dietary evil. But I do like that I can eat those products in a decent volume and get a good amount of protein for a small calorie expenditure. As I have tried more actively to balance CR and Paleo, I have moved away from many dairy products because they not give me enough bang for my nutritional buck. But I do miss them.
And I refuse to cut all dairy out. I think it is unnecessary. I love making myself a cheese plate after dinner (this week: tarantaise, st. nectaire, and rambol) with a little bit of prosciutto or salami. I have half and half in my coffee. I occasionally have a misto from Starbucks, with 2%, heavy on the coffee.
Am I sabotaging my body? Maybe. It's debatable. I am not lactose intolerant, and small amounts of dairy do not bother me. But at the same time, I feel a bit strange eating low fat dairy and pasteurized milk, knowing all the processing that has gone into them. So the internal struggle continues :)