Personally Im very happy with using Dreamweaver for my Web Development.
I hand-type all my code and (for XHTML) use Firefox/IE/Opera to preview code. I never use the WYSIWYG editor so the quality of this I cannot advertise about.
Dreamweaver 8 handles code folding quite nicely (I just recently discovered the advantages of this) and its syntax highlighting works like a charm for everything apart from those <<< or whatever, but I rarely see them and never use them.
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