It's not quite that simple, either. LiIon batteries do have a set number of charge/discharge cycles, but they also do deteriorate even when they're fully charged. Battery technology has been improving over the years, and many of the problems are more of a nusiance now than anything else, but they still exist. Batteries are still a "consumable" item, with a practical lifetime of one to three years. Individual cells may last longer, but you have multiple cells in a battery pack, and if only one cell fails the battery is just about useless.
I think that if you want to draw the most life out of your battery, you need to make sure you fully discharge it at least once a month. Just use it until it sleeps, then fully charge it before unplugging it again. All other times, use it however you want to.
This isn't as important as it was, say, four or five years ago, but it's still a good thing to do. I've been doing it, and my 3-year-old iBook battery is still giving > 2 hrs. on a charge.