STSDEV!
Long gone are the days of manually copying assemblies to the GAC, deploying features, and syncing changes to the 12 hive.
STSDEV will create a new visual studio solution for your project which will include build configurations that automate the tedious process of deploying a solution.
There is a 'rootfiles' folder in the solution. This is where you add all files that you usually copy straight to the 12 hive. When you deploy, all of these files will be moved to their corresponding folders. (you match the folder structure within 'rootfiles' to the corresponding directories in the 12 hive).
It is all much simpler to use than it may sound. There's a few really good tutorials on the codeplex site, and after that, you should be good to go.
As far as debugging goes, once the deployment process is streamlined via the use of STSDEV, attaching to the w3wp.exe process to test code then redeploying is easy.