LAMP or Dreamweaver? What? You do realise that, if anything, Dreamweaver is a relatively useful tool for developing sites built on a LAMP system? You know that LAMP stands for Linux Apache MySQL and PERL or PHP? And therefore you can't use LAMP instead of Dreamweaver? Ok, just making sure
Depends what and who I'm developing for. A simple site that's small and doesn't have a lot of updates and can be static, I'll use DreamWeaver.
For a site with lots of updates I'll use a dynamic website built on LAMP.
I personally don't use DreamWeaver with PHP sites for local testing. I prefer to build the templates for a dynamic site in a text editor and just view it in a browser.