Gods in Temples

I am a Hindu and though not overtly religious I do believe in god. I often thought about idol worship and its significance in our customs. Why do we go to temples and worship idols, touch their feet, prostrate, bathe with milk and honey, dress them up in gold and livery and what not. Do we really believe that god lives in those idols? Who created these idols and why? On deeper introspection I came to the conclusion that there are people who might not have a deep understanding of god and for them to see a representation of that entity in a visual form makes it easier to connect with him. Yet, this does not make a person, never visiting a temple but praying in his heart everyday any less a devotee. That he doesn't need a visual aid to pray to god only proclaims his higher understanding of the supreme being.