I have a friend who powers her biomass boiler using purely her rubbish. Her needs aren't very high; she lives alone and doesn't spend much time in the house. She does generate a lot of waste though, so this has been a Godsend for her. I'm not sure I'd be able to manage the same, but I bet it feels satisfying burning your rubbish and saving on your energy bills!
Something people don't realise as well is that burning things like paper can be completely carbon neutral. If the trees that are cut down are from sustainable areas, the trees that grow to replace them will soak up any CO2 released by burning their predecessors. It's a cycle.