"I also DM and personaly don't think any of the changes are neccessary or improvements. If you spent any time as a player in 3e you could DM 3e quite well. I hadn't run into any balance issues anytime I ran... not in one shots, not in campaigns, not high level (25th), not mid level (15), and not low level 1-5... I had no problem with it at any point on the spectrum."
Well, then you haven't had the misfortune of having a powergamer in the midst of a bunch of roleplayers. It is in those situations that balance is a supreme issue. If everyone has the same mindset, then you've already achieved balance. The players are all relativly the same power, and the DM uses challenges equivilent to the players.
However, you have one powergamer guy who can kill the monster in a single round, and you've got issues. The other players can't be effectual, and a challenge only occurs when the DM uses a monster far above the power of most of the players, so the powergamer has a challenge. 3e is notorious for allowing this, and creating situations where someone who really wants to create a "damage machine" rather than a character. The new ruleset is designed to fix this. If powergaming is your thing, and all the other players don't mind, then ignore 3.5. If however, the other players don't agree, or your DM is tired of having to rewrite the game every week to prevent you from taking advantage of some obscure PrC-feat-spell combo then find a new group which does appreciate your ability to deal damage.
"I think the best edition of DnD was Skill and Powers"
This is very telling.
We used S&P at one point, just before 3e. It was a mangled mess, and I was glad to get rid of it. It wasn't my idea, but the majority of the players wanted it. So, the poor DM had to make do. S&P = powergamer paradise. Full reign to tweak and poke and fiddle for the most available damage (or spellpower) possible. Man, I'm glad that day is done. If something like this ever reared it's ugly head again, I'd just have to find a new game to play.