Seems like there's a lot of disappointment out there due to the lack of love for iWeb, and I couldn't agree more.
What a shame.
Look, I know how to write CSS/HTML and have done tons of Wordpress / Drupal for clients, yet I STILL do some simple sites (including my own) in iWeb.
Why?
Because it's super-simple to update, and I can do it offline, and it has some cool (again SIMPLE) plug ins and "bells" and "whistles" that you can sprinkle in. The only issues I have with it are minor, like being forced to use a "slideshow" for portfolio-type work (as opposed to full-screen options), and having to "hack" it a bit to go full-width, etc.
It's way easier than Dreamweaver (which isn't really a valid comparison, actually), and more flexible than programs like RapidWeaver.
iWeb is a great "entry" for people just trying to "get out there" and get a site up. A toe in the water as it were.
As others have pointed out, this was a HUGE missed opportunity to include some HTML5 elements (even CSS3). Not updating iWeb is a HUGE FAIL on Apple's part.
Couldn't agree more.