My prefered distrobution at the moment is slackware. I have been using linux since 1994(? maybe 95). Those who speak of X-Windows in a negative manner do not know what it is capable of, nor do they understand it. People who 'bash' X usually have NO clue as to what it can do, and what its capable of. X has been in development for a long time, is very standardized VERY stable, and VERY configureable. Not to mention all kinds of features, like the one MGMorden mentioned. Although IMO I dislike KDE, and Gnome.
People who think that there needs to be a new Gui totally from scratch are nuts. There is alot of effort into X, and its recently picked up more speed. Although like everything, its not 'perfect', and doesnt have the MultiMedia capabilities of Windows 2000, it will. Starting over would not only scratch and entirely good interface, but you'd have to start ALL over. X is so configurable its very easy to add in such things like MultiMedia. Recent development of the 4.x series as been wonderfull, and moving along quiet fast.
In my opinion X is a good Desktop enviorment. I use it at home as well as at various jobs I've had. Its been my expereince that people who come up with crazy ideas for X, or think that it needs to be scraped, or that its no good, dont know how to utilize it at all. RTFM baby, and you can find plenty of really COOL things about X-Windows.
BlackBox is my favorite Window Manager, although its not as fancy as KDE or GNOME it is quiet usefull and configurable. Not to mention lightweight and fast. Its not for everyone. Thats another thing about X-Windows, you can use whatever 'Window Manager' you want. Separating those two things is what makes X so powerfull, its very diverse. You just need to relize what it really can do.