Joomla! is one of the primary CMS's that I use to develop sites at the moment (the other being Drupal). I often recommend Joomla! for smaller sites without complex hierarchies or the need to tag beyond a simple section or category.
With the most recent major upgrade (to 1.5 from 1.0), Joomla! has made a great stride forward and addressed some of the concerns that have been raised about it. (For example, it is now possible to easily override core display templates in your own custom template so you don't have to worry about hacking the core to add your customization back every time you upload a security patch). They've also implemented a much easier system of managing search engine friendly (SEF) URL's directly in the core. I believe in the future they will be addressing access level control as well (so that you can designate with more detail which users can edit which pages, or access which information -- currently you have three basic functional levels of access: anonymous, registered user, and admins).
Joomla! has a lot more eye candy (buttons and admin interfaces) in the back end administrative pages and I think that helps for non-technical users to feel safe.
You will find a lot of people who swear by one or the other, but I think either of them can be better than the other for a given project as they each have their pros and cons.
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