I find it depends on the code itself. I won't repeat Joel's statements from SO podcast #38, but the upshot is 'try to be pragmatic'.
Code coverage is great in core elements of the app.
I look at the code as a tree of dependency, if the leaves work (e.g. basic UI or code calling a unit tested DAL) and I've tested them when I've developed them, or updated them, there is a large chance they will work, and if there's a bug, then it won't be difficult to find or fix, so the time taken to mock up some tests will probably be time wasted. Yes there is an issue that updates to code they are dependent on may affect them, but again, it's a case by case thing, and unit tests for the code they are dependent on should cover it.
When it comes to the trunks or branch of the code, yes code coverage of functionality (as opposed to each function), is very important.
For example, I recently was on a team that built an app that required a bundle of calculations to calculate carbon emissions. I wrote a suite of tests that tested each and every calculation, and in doing so was happy to see that the dependency injection pattern was working fine.
Inevitably, due to a government act change, we had to add a parameter to the equations, and all 100+ tests broke.
I realised to update them, over and above testing for a typo (which I could test once), I was unit/regression testing mathematics, and ended up spending the time on building another area of the app instead.