WPF looked extremely complicated and overkill for UI design when I first saw it, but after developing a small application using it, going back to WinForms is painful. The binding features alone saved me at least 40-50 hours. I did all of the work in VS2008 SP1, and only used the designer as a kind of live preview of the XAML changes I had made. It's hard for me to imagine using a drag-and-drop style editor to create XAML-based UIs. I'm very anxious to try out VS2010 (hopefull a beta soon?) so I can see the advantages over straight XAML entry.
The change from Windows Forms to WPF is huge, I agree.You can do so much more in terms of User Experience in WPF. And in my opinion the UI is the final frontier. In WPF you can provide your user with more information. And I am not talking about textual information, but visual information.For instance; if you click on an object you can create an animation to zoom in an then break down the object into individual components, to see how the object is composed. That's relatively easy in WPF compared to Windows Forms. It just wasnt possible.There is a video up on this site that displays virus reseachers linking documents to the actual components of the virus. Before they needed endless pages just describing what elements of the virus they research before they could present their results!That's the power of WPF!