Agreed, PID is way overkill for what we use. However, it's so standard in industry that the controllers are dirt cheap - that's more the reason why we use them.
I've tuned a few PID control loops by hand as well, although nothing like Tony's achievement. Most recently, a control loop around a cooling system for various bits of plant incorporating a 3-way proportional valve and a pump with a variable speed drive fitted. The result is quite pleasing - slashed the electrical consumption of the plant by about 15%.
It's really quite difficult to explain their operation without delving into some heavy maths. What helps me tune one is imagining I am standing in front of the controls and the only information I have about the plant is what is coming in from the sensor(s) attached to the controller. Which knob do you twiddle, which way and how hard to keep the set point?
If you twiddle hard to bring the set point back under control, you need more P.
If you have to back off to reduce overshoot, less P
If the set point is tracking close, but a little off, you need more I.
If over time, the system 'hunts' you need less I.
If after twiddling hard to recover the set point from above, you need to twiddle back again to stop overshoot, you want more D.
If all hell has broken loose and it's uncontrollable, you need less D.
There are more accurate methods, but generally that involves some logging and later analysis of the system, but the above normally gets a system reasonably responsive.