But SoD doesn't directly do anything... it is a chance something will or will not happen.
A 90% chance that something will happen based on a 4 PC party. Note, that's 90% PER ROUND, although the chances actually do drop every time a PC is killed. Funnily enough, mathematically speaking the best tactic for dealing with a medusa is to fight her one at a time.
The way I see this, there are basically three issues, so, I'll take a stab at each in turn.
1. Ramping up tension.
AFAIK, this is stating that the DM should increase tension with a SoD creature before the encounter. It apparently doesn't really matter about the tension within the encounter, tension should be driven before you even meet the SoD creature.
I 100% agree with this. This is excellent DM advice. You should raise tension before an encounter with a SoD creature. But, in the end, isn't this true of every encounter? Do DM's actually only do this with SoD creatures? I don't think so. I think a Dm should be ramping up tension before each and every encounter (save perhaps ambush encounters, but, quite possibly even then). This isn't limited to SoD and really, IMO, has little to do with SoD or SSSoD.
2. Deviation from the source.
The argument here, that BryonD has been tapping quite heavily, is that if you see the medusa you turn to stone. This is how it works in the myth, and that's the way it should work in D&D.
However, the problem here is that it has NEVER actually worked this way in D&D. You have always been able to resist a medusa's gaze attack. Every single edition of the game actually agrees with this. The flavour hasn't changed at all. The only thing that has changed is the number of chances you get to make your save.
But, as far as in game narrative goes, it plays out EXACTLY the same in any edition. Character sees the medusa and is forced to save. In pre-4e, that's the end of the story, at least for that round. In 4e, it's the end of the story if he makes his save, or, he gets a couple of more shots at it as he gradually succumbs to the power of the gaze.
Which brings me to the last point.
Math
I've been hitting this one pretty hard and I'm not sure if anyone's actually directly addressed it to be honest. In my mind, there's no difference between adding a +infinite damage bonus to a monster or SoD. Both mechanics do an end run around all the other mechanics.
But, +inifinite damage is broken, but, SoD is not? That it has been in the game for a long time does not make it not broken. The math is pretty clear on this. For a SoD area of effect creature, you're looking at about a 90% chance of PC fatality. It's fairly random which PC will die, but, it's still around 90%.
How is that in keeping with encounter design? A given creature generally shouldn't have a 90% chance of whacking a PC in a fairly standard encounter. Elder dragons have been brought up. Let's not forget that we're talking about creatures that PC's shouldn't be facing until the high teen levels in 3e. By that time, the breath weapon isn't as scary as it looks because characters can be assumed to either have the hit points to straight up take the damage, or enough resistances to make up the difference.
To me, changing to SSSoD is in keeping with the mechanics and the base assumptions of the game. A 7th level party isn't going to be walking around with a bag full of defenses up and the party is nowhere near high enough level to reverse the effects of the SoD. Poison? Sure, slow poison is a second level spell as is Lesser Restoration. Both are easily within reach of a party regularly facing poison attacks.
Anyway, I think I've derailed this poor thread enough, and, as the side comments are showing, this is just not going to go anywhere. I've presented my case and it's not going to get any better than that.