Resign if you want to, play on if you want to. I've been known to resign a game just because I made a dumb move that gave away a pawn for nothing.
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The toic of resignation has been discussed several times in the forums, however, I think I have a (slighly good) idea on why you should resign online games. And I'd love to hear some feedback on my thoughts.
So when you are down 2-3 material i think it's time to just hit the button. THE reason being: If you waste 5 more minutes trying to save a lost cause, that's 5 minutes you could have used to start and hopefully win a new, and equal game.
However, if you are not self consious about insulting your opponent, then don't resign in otb tournaments. If the next round is an hour, it would be good to keep playing rather than sit around for an hour more.