I've run one at a friend's house. I'm sold, period.
The main advantages for me are the filtering and the panadapter display of the band.
You don't have knobs, but the way the interface works, you really don't need them. You can get the USB knob if you want and use that to tune and I've had that in my hands too, it's quite solid. It's just faster to run the whole thing with a mouse.
Currently they are Windows XP only and you'll want a dual-core processor at a minimum to avoid any interrupt issues and latency (skips and pops) in the audio.
However, the new development is all going on linux as the native platform. As soon as they come out with the native linux version of Power SDR I'll be buying one.
You can download and install PowerSDR for free from their site, and then find some .wav files that are band samples. When you play back those .wav files, you have the exact control of running it as an actual live receiver. Everything works as it would if you had the radio.
For phone use, AM or SSB the audio flexibility can't be beat.
The SDR-1000 requires more fiddling and more cables to deal with but you can find them used now for <$900. The trick is to get one with the Edirol FA-66 firewire soundcard and to be sure it is the 100W model and not the QRP model.
The SDR-5000 is the new one and they have put a lot of nice features into it. It's simpler to cable up and much quicker to get calibrated and on the air.
We'll have to see what the budget holds next spring when the new linux software is due out.
Would I run it as my only rig? Probably not, I'd likely always keep a 'hardware' radio around. Mostly because the computer can always break down and it introduces more variables.