The slower performance is unacceptable for me. I recently worked on some phase2 work for a .net 1.1 project. While upgrading to 2.0 was discussed we could not find the value in doing so.
I do understand that vs2005 is a very complex product but for me it is just a small piece in a complete enterprise package I have to deliver. It is not worth the frustration since I can achieve the same results with vs2003 and .net 1.1.