I just finished experimenting with iweb and agree wholeheartedly with your review. I do think, however, that the alternative to iweb may not be Dreamweaver, but rather Shutterbug or Rapidweaver. Shutterbug, in particular, seems to offer the best of both worlds: drag and drop into templates but also the ability to alter the pages. They're only up to 2.0 but it's a great start. I like Rapidweaver as well, although with Rapidweaver altering templates seems to require some knowledge of coding. I've also been playing around with Freeway Express. This program too might be a nice alternative to iweb for those who don't want to play with html.
iWeb: A First Look