I've been running Vista Ultimate for a couple months now on a relatively ancient machine and haven't had any of the problems you're talking about. This is an AMD Sempron 3100, 1GB RAM, and a GeForce 5900FX 256MB APG card. My system feels just as fast (lol) as before, and I like the Vista interface so much more that I have no reason to go back.
For one thing, I've never installed 7zip but somehow a fresh install of LFS from the original archives and all the test patches have never gone awry. The only archive software I have installed is WinRAR, but I'm not sure that has anything to do with self-extracting archives? Maybe I'm misunderstanding something, but isn't the whole point of self-extracting archives the fact that you don't need a particular decompression software to extract it?
I have encounted one real problem however, but it's basically due to hardware vendors not creating new drivers for olllld hardware. My Sony Clie palm pilot won't sync with Vista, and I don't think nVidia is planning on updating drivers for my old card. So that kinda sucks.
But yeah, my audio production software and hardware works, LFS works, and I like the look and feel of the OS better than XP so I don't know what more I could ask for. Wish I could tell you how to fix your particular problems, but I haven't experienced them, so
But it seems to me that most of the negativity is just so much propaganda.
And "confusing new look?" Elaborate?