I'm always wary of counter offers. If I liked my job then I wouldn't have been looking, but now since I've given a notice, even if I accept the counter and stay around, they know I was looking. Next time cuts come around, I know who's on top of that list. And the other offer may not be there when I need it.

I'd totally take the salary... you'd start lower on the totem pole, but there's no place to go but up.