I haven't made the switch to Lion because of the changes to Spaces and Expose. It looks like it will make my workflow much worse, so reading your post is helpful. I couldn't image anyone finding the new methods useful.

I have 6 'desktops' in Spaces. A few of my programs open in only one desktop and some open in whatever desktop I'm in. Each desktop isn't one program but a collection of what I need to work on a particular project. It keeps the minor things off of the main workspace, but still visible when I need something else to do.

Mapping F15 to open all spaces at once, so I can drag and drop between the spaces and see all projects at a glance is something I use ALL the time. The control arrow keys flip me from one to another.

Expose is great if one particular desktop gets too much on it.

I can't image life without them.