I feel your pain.
I have an '01 Corolla w/ black paint job and clear coat.
it was great just a year ago but no so great now.
I work in San Francisco and my job has a dirt road
My hood had about 7-10 chips in it down to the primer (light grey).
Only one or two went through to metal (bright silver) these are the ones to worry about, because they could lead to rust.
I fixed mine using Toyota touch-up paint. The colors match perfectly.
yet it is very hard to avoid seeing brush strokes/over lapping.
Basically, you can't tell at all from about four feet away, but when you get close it's like little divits that are the same color. :cry:
Just be really carefull if you use the touch-up paint. Try and get a sharper brush than the one in the bottle and use multiple layers untill it matches the thickness of the rest of the paint. Scratches are much harder because they are so thin, it is impossible to only paint in the scratch.
I also had a pretty good sized gouge out of my side body molding, but it looked better than the hood chips when I painted it. I think it is easier because it's plastic.
I think the T-U paint works fine because you don't notice unless your nose is in the paint job. I plan to repaint the car totally when I pay it off in 2005 or whatever.
Funny no one else at my work seems to have excessive chipping.

: oh well, let us know what you decide to do.
PEACE-