Actually, let's put it a different way and go to extremes. Which sounds better to you - that I want to buy a Panasonic Lumix DMC-TZ6 because it's got a 4.1-49.2mm zoom? Or because it's got a 25-300mm equivalent zoom?
That's all we do when we quote equivalent focal lengths - we take into account the sensor crop. We're not pretending anything is magnifying anything - it's just waaaaaaaaaaaaaaaaaaaaaaaaaaaay simpler for everyone.