I think it all depends on your style of parenting. There are many people on this board who believe in attachment parenting and who discuss Dr Sears's books and advice on parenting. I do not fall into that category, so take what I say with a grain of salt as it may not mesh with your parenting style....
I do not believe cry-it-out is necessary. I don't think someone is a horrible parent if they do it, but it's just not necessary in my opinion. If you want to lay with her or do things to help her fall asleep, that's also not necessary, but you aren't a bad parent for doing that either. But obviously you are ready for a change or you wouldn't be writing to us about what to do!
You will need to experiment with what will work for YOUR child because every child is different, but here is what I recommend as the happy medium between cry-it-out and laying with her.... (I've recommended this several times on this board and had moms write to thank me because they were amazed how easy it worked)
Start some sort of ritual with her at bed time. Most bedtime rituals are not something you can just create but instead they are something that evolves. For example, I decided to sing to my son one night and he wanted me to stay and sing some more (as a stall to keep me from leaving!!) so he kept coming up with more verses of the itsy bitsy spider (like the teeny teeny spider, the big fat spider, the happy happy spider, etc.) We now have 5 verses that we sing together in the same order every night after his daddy does prayers with him. Sometimes he tries to slip in a new verse like the squishy squishy spider, but I always insist that happy happy is the last verse no matter what or I'd be there all night! Then... I hand him his blankies, cover him up, and quietly discuss what we will be doing the next day. I tell him I have to go put my PJs on and I will be right back.... The first time I did that, I really did change into my night clothes and go right back into his room--- now I go do something like check some email or do some dishes or laundry and go back in after 5-10 minutes, sometimes longer because I forget! Anyway, be sure to go back in as promised. By now, I usually don't have to go in again, but in the beginning, I would go in, lay him back down if he was sitting up, tell him he needs to get some rest for whatever it is we are doing the next day, cover him up, and tell him I'd be right back (it helps to let them know you are going to do something--- something boring they wouldn't want to go and do with you, like wash dishes or brush your teeth or whatever). Walk out and make sure they understand you WILL be back as promised. Eventually, you will either walk in and she will be very sleepy and drift off, or you will be shocked and find her actually asleep.
Here is the thing that you need to remember... this is something NEW so it will not work like a breeze the very first time you try it. It may take several nights or up to a week before it starts to become a routine and make sense to her that you WILL be back as promised and that in the meantime, she is JUST FINE by herself while she waits for you to return, and eventually feels comfortable and sleepy enough to drift off on her own. If you need to leave the room and come back every couple of minutes over and over and over and over and over again for a few nights and it seems like it's taking forever, remind yourself that before you tried this technique you were having to lay motionless on the floor with her for just as long or longer, thinking of all the things you could be doing, accomplishing nothing, and not teaching her to be OK drifting off alone. You can do this!!!
As for the mom who thinks it's wrong to train our children like dogs, sorry she feels that way. I think we are letting our kids down if we do not teach them things that will help them become less dependent on us. I am not teaching my kids to fetch or bark on command... but I do train them to say please and thank you, to be confident sleeping on their own, and tons of other age appropriate things that don't come naturally but I think are important for their well being and to help them become well mannered and independent children.