I'm with you, although I do think the UI leaves something to be desired. I'd probably recommend DropBox to my parents -- at least until Windows makes "Live Mesh" just a built in part of Windows.

Question for you, in the old version of Live Mesh there was an Explorer extension, where I could right-click a folder and say, "Add to Mesh". It appears that this is gone and I have to go to the Live Mesh app to add a folder. Is there another way to do it?