Asp.Net is a very powerful language and isn't too different that Asp. It did take a little bit of extra learning, but it was well worth it. was in very much the same boat as you are and can not stand how the WYSIWYG editors reformat all of the HTML. I've spent a very large part of my life using Notepad for all of my programming needs.
I have been using Visual Studio 2008 for my Asp.Net sites since it came out. I do not use the WYSIWYG mode, but rather always view the Source. This allows me to utilize the color coding of the code, provides access to IntelliSense and enables easy formatting. You can quickly comment or uncomment large sections of code, indent large sections instantaniously and pull up help files with the touch of a button. Using the Source Mode only, I have been able to maintain a very clean and usable set of Html, with all of the benefits of the WYSIWYG editors.
Using VS2008 or VS2010, it is not necessary to have any project files or DLLs that you manage, unless you are creating custom DLLs. Your custom controls can be written and accessed through Notepad, without the need to recompile. Personally, I usually open the Website via FTP Server and manage it from there. This does not require FrontPage extensions, but also does not require the separate development Server for using and editing offline.
The Config files are a necessary part of IIS and can be very beneficial. Fortunately, the Web.Config file is used primarily to store the configuration for your specific information such as your Database Providers, Membership Providers and security restrictions. A majority of the Config file is stored in Machine.Config and allows you to minimize the amount of information in it.
As I said, I have spent many years using Notepad and FTP to edit and manage websites. A large problem was always ensuring that the files are continually synchronized and you don't accidentally overwrite the newer files with older ones. Using VS in FTP mode takes care of this for you. Your local files are time stamped and if there is a conflict, VS will ask which edition should be used. Check it out. I think you'll find VS very beneficial.
Asp.Net is also used for the Ajax Control Toolkit, which is essentially an add-on of controls for web development. You can get more information on them at www.asp.net/ajax. They are very powerful and open source. For the bulk of us, you can use the pre-compiled Dll, which is a single file, and upload that to your Bin Folder. Short of that, all you need to do is properly reference the resource in your page and they are usable. It's a very simple process, but can save hours of writing JavaScript and client-scripted controls.
I hope this helps you out.
Scott