As the original hand coder that inspired the mighty lechuck.
I still love using notepad because it shows that you still have all the knowledge of the tags, functions, and syntax of what your building. Knowing the syntax inside and out comes in handy when trying to debug problems.
Dreamweaver does add some benefits when working professionally with web design, and has come far from the messy gui web editor of it’s youth. It allows for real-time previews of most pages, I usually work in split mode so I can work in text then check it in the design view. Code Completion and Syntax Highlighting also helps out a great deal.
Dreamweaver is good for getting stuff done quickly in a production environment.
However for those who hate all that GUI, after a while I grew out of notepad’s functionality and found that Textpad (http://www.textpad.com/) has alot of added value like syntax highlighting for many languages and tabbed files(so you can work on a few files at once).
Notepad still is the best test of your abilities and anyone learning the basics should use this, not Dreamweaver. That’s cheating.