Hi 97guns,
Like your brother, I am also a health-nut.
I did tons of research on the matter and decided that I'll always have one nonstick skillet around for eggs, pan potatoes, etc..., but will use stainless for other things -- like browning beef, searing chicken breasts, making risotto, etc... I use my nonstick skillet on nothing higher than medium heat, too.
However, you probably should replace nonstick pans when they start to flake and get badly scratched. Although the material is slippery, there are no long-term studies that explore the effects of consuming nonstick coating. I haven't found any evidence to say it's bad or good, but I'd rather be safe than sorry.
Hope this helps. Short answer? Teflon pans are fine! Just don't abuse them (read: metal utensils and high heat) and replace them when necessary.
Tim