Nothing beats Notepad but I am partial to Dreamweaver - codeview or not, once you've been working with it long enough, you can do just fine without generating extra code.
Plus, it's great for managing the whole site, updating links througout the pages, replace feature is irreplaceable (he-he, pardon the pun intended) - absolutely a must when you have to work with pre-messed code - for example, if you want to trash all the font formatting (so you can apply the stylesheet) you can clean up the code first by the replace command for all </font> tags with a blank space, and go from there, etc. You can see the improperly tagged source highlighted - great for when you have lots of pages to review, especially when they are not yours and you have to actually read trough the code. I love the source formatting feature - a real time saver. Once you done with your page in DW, you can still go over the code and nip-n-tuck here and there, but the whole process will take you much faster, then the reading/editing in Notepad (or writing from scratch).
Plus, it's great for writing your (or messing with "borrowed") PHP scripts, too.
In my opinion if you have small compact pages with all the formatting done via css, and all the scripts attached, and small websites - then Notepad is just what you need. If you have extensive pages and large sites - DW is a must to be used for codeview and site management.