Agreed iMovie 08 was a joke and really a step backward from iMovie 06, which is why I not only downloaded the iMovie 06 HD version Apple made readily available, but also purchased a copy of Final Cut Express HD though I haven't had the time to really use it yet.
The awful part is that if you want to publish an iMovie file to a web gallery with .Mac/Mobile Me, you can't do it in iMovie 06, so you have to open the file in iMovie 08 when you are done in order to publish it to the gallery. And it has to convert it. Just a couple extra steps.