I think Linus is right on this one. I have been using KDE based linux desktops on my primary computer for ~7 years now. KDE 4 is a huge step back. The even bigger problem is that linux distros (Kubuntu and OpenSuse) are happily pushing KDE4.1 as the default KDE desktop. In fact with Kubuntu 8.10, there is no option. For KDE 3.5 you have to use 8.04. KDE 4 takes the GNOME approach to desktops (i.e. user's IQ is equivalent to a mostly dead rodent of unusually small size and any options would confuse poor afore mentioned user and therefore options are bad). Before the GNOME loving flames begin, yes I know there exist external tools to start fiddling with options, but the amount of flexibility is not the same as KDE 3.5.10.
KDE 4 unfortunately takes the GNOME approach, and removes flexibility. Worse still, all the developer time for KDE 4 is now going into polishing the interface (which while shiny is no better or more intuitive than KDE 3.5) while not bothering fixing apps people actually use. For example, on KDE 4.2, if you add a webdav calendar from a https source which has a self signed cert, you will be prompted every time it reloads, whether you want to accept the cert or not. Yes thats right, even if you click accept cert permanently, the DE is incapable of understanding it. This has been outstanding for a while, but all recent activity seems to be towards fixing desktop effects or making the kicker work. Its ridiculous.
/rant