Thanks for the feedback!
We are trying to keep at least one branch as close to CM7 as possible, which is why ADWLauncher is included. You can uninstall it and install the launcher you like.
Once the bugs are fixed, I will release a lean version without launchers, themes, wallpapers, and extra ringtones, should be able to cut the install package down to less than 60megs that way.
Edit: I posted a new build, new kernel, and a few bug fixes, see bottom of my OP.