After a few months of intermittent use and two weeks of regular use, I think iPhoto 7.1 is quite a nice upgrade. Apple fixed a lot of iPhoto annoyances, though they again decided not to support Library merges.
There's one odd regression however. Red eye correction in previous versions of iPhoto was great -- significantly better than Aperture in my hands.
Now it closely resembles Aperture's red eye correction -- and I don't like it. Pupils are showing odd dark gray blobs rather than a reasonable facsimile of their true form and color.
Ouch. That's a heck of a regression.