I write both HTML and RTF files in notepad. I use xPadie for colour quantization (it works better than Padie, sometimes I try both programs) and pngout for PNG compression. I use ArcSoft PhotoStudio 2.0 for graphic editing, you can probably find the free standard edition all over the web, I think they took it off their own site though. I hope to have my new website ready soon. And no dreamweaver is not better for bigger pages than notepad - at least not unless the file is too big to be opened in notepad, in which case WordPad would do fine. But I think the later versions of notepad don't suffer from the file-size limit that they used to. I'll give you an example of why I write RTF in notepad, one file is 24,943 bytes, it has one JPEG in it. If I open it in Word and then save it, Word makes the file 423,526 bytes. 17 times bigger than my original. If I open that file (the one saved in Word) in WordPad and save it it becomes 379,426 bytes but looses the header and footer. In some ways RTF is even easier to write than HTML.
But HTML is so dead-easy I'm supprised anyone needs a WYSIWYG editor. I test HTML pages in IE and Mozilla (even though it's an awful excuse for a browser). I bet dreamwaver doesn't tell you how to make pure CSS image-rollovers/pop-ups (that DON'T use scripting at all).