It's actually not all that bad. I spent a few hours fiddling with it and came to the following conclusions.
1. It's geared more towards 'developers' than 'designers'. I'd argue the toss that the design view is actually slightly better than Dw's, but it looks and feels like a coding environment.
2. They've obviously stolen some of their ideas from Dreamweaver, however there were times when I found a neat feature which made me think "I wish Dreamweaver did that". On the flip side there were times when I thought "why the fuck didn't Microsoft do that?"
3. They're facing an uphill battle because part of the attraction of Dw is that it integrates with the rest of CS3, which MS apps obviously don't (although by the look of it, they're planning to release an entire suite of products which are 'supposed' to fulfill some of these roles).
4. At almost every turn (especially in their promotional blurb) they make a HUGE play out of the fact that it's all about standards compliant code; which stretches the bounds of irony to the limits when you consider that a lot of standards compliant code won't even work in their own fucking browser.