Prevention is definitely better and we have the heating on for 20 minutes in the morning and 20 minutes in the evening in winter, so we're hardly extravagant. But if my husband wants to go online and offset those 20 minutes, it's still better than not doing it. In my opinion.
It's when offsetting is used as an excuse to not change, it's a problem. And yes, in poor communities where cutting down trees is the only source of income, then it may seem stupid, but the trees are better not cut down, so consider it a donation to helping the poor live more sustainably, if you prefer.
We try to reduce our emissions rather than offsetting. But my husband offset our emissions one year, and I still think that's a good thing to do, if you're doing all you can to reduce them as well.