First I'd like to say that this discussion has been very good, and I know from mail I've received, very helpful to many readers.
The archiving issue is a sticky one. I think Apple may have underestimated the sheer quantity of photos that many of us record on a regular basis. Afterall, that's the joy of digital photography, right?
But I still don't think this is a deal breaker. I've used iView too, and I think it's a good product. But I like iPhoto more because it's a better hub for sending photos to Kodak, to book printing, to web pages, to QuickTime, etc, etc.
I do have one nifty solution for those of you who would like to have iPhoto's Library reside on an external drive. It's a slick AppleScriptlet called iPhoto Librarian. Read the instructions, but basically it allows you to reset iPhoto's Library preferences to anywhere you want. So if you have a nice 40 GB external drive, you can dedicate it to your iPhoto Library. Kind of nice.
While using the application to manage my images for O'Reilly's Bioinformatics Conference, I had a chance to battle test it in combat conditions. It held up really well. My main disappointment was that I discovered that I couldn't search by "Title". I filled-in that field for every photo, which is useful for a variety of functions, but could not retrieve pictures by those titles. That definitely needs to be fixed for the next version.
As for some of the reported slideshow problems, I haven't been able to duplicate any of them on my Pismo or TiBook, so I hope other readers can help those folks out.
BTW: It looks like iPhoto is going to save me about 15 hours on this current conference job. Sweet!