CS3 is trememdous. Improved filters like the black and white conversion and contrast, among a whole bunch of other improvements, make it a great tool. The latest camera raw is splendid too. Used together, they are a fantastic combination and at present, CS3 will be needed to put the finishing touches to most quality work done in Lightroom. Selections, cloning and the like, including final output sharpening are just some. I prefer to print from CS3. Fine work that Lightroom cannot handle yet must be handed over to any recent version of Photoshop.
What I personally find about Lightroom, however, is its user interface - neat, logical, sequential steps. On the panels, you move down in a structured workflow which leads to a natural conclusion. If you find too many panels cluttering up the real estate, right click on, say, basic and activate SOLO MODE and see what happens. Then simply click on whateve mode you want in either panel. Things like that make Lightroom very user friendly whereas Photoshop can sometimes be a pain in the ass, especially when you're trying to learn it. From now on, I keep out of PS as much as possible and stick with Lightroom - warts and all.