I've seen some people say that contract-to-hire jobs what incompetent programmers take, but I don't really see the connection between that and your programming ability. Nor how they have a lower bar for hiring than full-time or contract-only jobs. Are the words in CTH usually weasel words?
I prefer full-time only jobs but personally, I'd be willing to work a CTH job for a major tech company. If I get an offer for a CTH job I would treat it as a contract-only job (in the sense that I'd be contractor right at this moment) and therefore ask for contractor rates.