More on symlinked directories:
It's worth noting that Pythonic's warnings about symlinked directories do not apply to versioned symlinks. The major edge case in question was that of folks symlinking some or all of the working tree into a different path (say onto a different partition with more disk space) and expecting git to check out code through the existing symlink.
That is, if you have a project that contains versioned symlinks to files or directories, the normal symlink-as-blob behavior will preserve symlinks, correctly version changes to those symlinks, and otherwise work as expected.
The above behavior tested with git 1.6.5.6; but I strongly suspect that versioned behavior has been correct in git for quite some time.