I could write a book about iPhoto and why I haven't used it much. I agree that iPhoto has been a bit more confusing over the years and I've been using it recently only because of the iPhone. I don't like NOT having direct access to my pictures' folders, so I usual copy directly my cameras' pictures on my hard drive and bypass iPhoto, using another app (like Color It!, the poor man's Photoshop, so much faster and easier to use).
Anyway, iPhoto stores all the original pics in the "library".We, humble mortals, have no access to the invisible folders where the pictures are kept (unless you want to run some exotic software). Anything else, in any artificial division like "recent" or in the "albums", is thumbnails. You get rid of the originals (by trashing it), and bye bye picture. The thumbnails remain if you put them in different albums, for example, completely useless.
I don't like the newer divisions "events" with iPhoto '08. Each time I take a picture and upload it to iPhoto, I get a new "event" I could live without.
I don't like the fact I cannot really zoom all the way on the pics anymore, like I could with the previous versions of iPhoto.
I like the new book-calendar-card option. I've used it already, but I know its use will be very limited.
I sort of like the webgallery option, but I wish the pics were uploaded at full resolution. (To display my best pics, I still put them directly on my homepages via iDisk).
I really like the "adjust" function in the picture control panel, which allows to tone down the highlights or brighten up the shadows selectively. It's a lot easier than playing the "exposure-light-dark-contrast" stuff in other apps.
But until Apple comes out with an easy way to put the iPhone in disk mode, and we can retrieve the pics at full resolution, bypassing iPhoto, we're stuck using it for now.