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There was a discussion on this here [webmasterworld.com] recently.
I've seen a number of discussions on it of late, and most of the reviews have been very good. I particularly like the fact that, as a developer, you can send your client a config file which tell Contribute which files the user can and cannot change.
My one reservation would be the GUI for the user - it's quite similar to the Dreamweaver GUI (although heavily trimmed down) and I wonder if it could seem daunting to novice users...