I think you should see this program as one that is meant for the billions of people that have once tried to create a website using the export function in Microsoft Word... It is a program that lets them do just what they wanted and wasn't possible with Word: a very precise "wysiwyg" web page editor.
To me, iWeb seems great for people who are not interested in learning the basics of web design. People that just want the ability to publish in a really consistent "wysiwig" way. Consistent with their original design and consistent on all browsers and platforms...
It is the dream of the person who once regretted spending a lot of time designing a nice page in MS Word and clicked "export to html"... Plus it lets him easily add photos, movies, music... with many effects and creates their rss feed for podcasts !
Of course, it doesn't make real "clean" code, the way typical webdesigners expect to see it. They had to only use images! How else could you make it that the fonts and colors that the person chose to use when he designed his web page would be the ones used on other computers? How else could you guarantee such precise drag and drop placement of items on the web page? The average user, like my parents, really won't mind if their web page takes a bit longer than others to load... They won't be placing any advertisement on it anyways... (other perhaps than the "made with a mac" logo they'll proudly wear on their site...) At least, they'll avoid a lot of frustration...
I think Apple did a GREAT job with this and am really expecting great improvements with future releases. This sort of software is what I have been expecting them to do for a long time. I'm sure it will be a success.
And also, I have been plaing with it for a little while too and I'd like to say the author is wrong when he says you are limited to Apple's templates. This thing is a lot more "tweakable" than you'd first think. As said previously, you don't have to have any of the standard navigation items appearing on any page. Also, there are two "templates" called "black" and "white"... Just take any of these and easily delete all the items that are preset on the page. You got a blank page with which you may do anything you want, import any graphics, use any fonts, any design you wish... Build all the links. The only limit I have really found is the page size...
I'm pretty sure one of the future improvements could be a system offered for .mac accounts that lets you have friends leave comments in your blog/podcast...
iWeb: A First Look