Well, it works nicely if you do more than one thing... But for some people, they just don't have the space...
I myself use AltDesk (by the same people who brought me Aston, my alternative windows shell (down with explorer!))... It makes it so I can have numerous items spread over numerous desktops...
So, for example, I have 4 desktops configured right now; I have:
1. FFox
2. Thunderbird
3. IRC Chat
4. Pidgin chat sessions
I hit ctrl and the left/right keys to scroll through them, or just click in the desktop area to switch. Everything notifies me of new activity so I can just click over when something is new.