Currently the couse Im doing we are forced to use Dreamweaver as many companies use it for Developing.
I tried my hardest to get out of it because of the bloated code Dreamweaver gives, just try doing PHP with it, easy to do but being a programmer it made me sick looking at it.
So basically as much as I hate it there not going to be going anywhere anytime soon except MS Frontpage.
I personally prefer to hand code, as firstly you know what your doing, you dont need to go through bloated code (unless thats the way you code) to fix something, you can document your code unlike Dreamweaver which has very little if any (tries not to bring back supressed memories).
Hand coding you can also optimize the code of course with Dreamweaver you can to however dreamweaver wont display that optimized code correctly if its HTML.
But like I said companies still use it, and if you want a job doing web development your going to have to know how to use it. And also fix bloated bits of code which are undocumented.