Jimbo, you are WAY to harsh. Step back and look at the big picture. iWeb is aimed at the 99.9999% of computer users who don't have both a computer engineering degree and a fine arts degree. A "blank page" is no good unless you have an artistic eye for what makes a pleasing layout. The beautiful layout is no good unless you can work your way thru a very complicated web creation program.
iWeb takes away both burdens to web creation. It lets users focus on the content of the page. The templates allow for a lot of control in how the pictures and text are laid out - maybe not "complete control", but way more than enough for the average person.
And as someone has noted, one of your biggest objections (about the links from the pregenerated pages being limited to the top) is wrong.
I predict this piece of iLife will be a HUGE success, because it does what it does so well.
iWeb: A First Look