I agree, all-in is a bad play there.
But going back to the second topic of discussion, you also don't have enough money at the table to push anyone off of a draw in a big pot. In fact, your lack of chips might make it CORRECT when it was wrong otherwise.
Sklansky talks about that a lot in limit, that fish have odds to call down with middle pair and stuff. It's because you can't bet them out. And neither can you at these NL tables.