Yes, DW is definitely expensive, if my employer hadn't paid for it, I most likely wouldn't be using it. But, I have to strongly disagree with your claim that it is less capable than cheaper or free alternatives. I've tested a TON of options on both Windows and OSX, and there is not a single program that offers the same wealth of features as DW.
It depends what features you mean. Eclipse, Netbeans, Komodo, and Aptana are all MUCH more powerful than Dreamweaver, and two of those are 100% free.
That's time wasted, in my eyes.If anything, DW does too much, and forces you to spend a lot of time customizing and stripping away the bits and pieces you don't want.
I spend a big part of my day at work in front of my Windows workstation with Dreamweaver, and I also spend a lot of time with BBEdit on my Macbook Pro. I've been doing web development work since 1997 (Allaire Homesite FTW!), so I've tried a lot of HTML dev tools. While Dreamweaver isn't my first choice (especially when spending my own money), it is a very good product.
I guess we'll agree to disagree I wouldn't touch Dreamweaver with a 30-foot pole, nor would I let anyone on my team use it, but to each their own