Roni--agreed; as I understand it, to publish via FTP, all you have to do is export the iWeb directory to your desktop, then upload normally using an FTP client such as Fetch or Transmit. An extra step, sure, but a pretty simple one (and one which iWeb 2.0 will likely eliminate anyway, I'd guess).
Yes, Karelia is scrambling here--not that there's anything wrong with their product (that I know of), competition is always good, etc etc, but they've gotta be alternating between fuming and a yucky feeling in the pit of their stomachs.
Not sure how I feel about this one. I tended to side with them on the whole Watson thing, as well as the Konfabulator guys, but in this case it appears that Apple truly beat 'em to the punch (and it's not like the concept of a WYSIWYG HTML editor is exactly revolutionary anyway). Plus, as a user of the pro apps (mostly GoLive, but also some Flash and occasionally DreamWeaver), I probably have a different take than the target market for either product anyway.