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MobileMe has been working OK for me. I've had a few bumps along the way but as of right now it's working great.
I did have a problem with appointments being synced at different times until I noticed that I had the server set to a different time zone than my Mac and iPhone. After I changed them all to the same time zone, the problem stopped.
The only thing I wish is that Entourage would get an update to sync contact photos. Until they do, I am using MMe instead of my Exchange account for anything other than email.
Agreed completely. I too have turned my back on MobileMe in favor of an Exchange account, which, by the way works WONDERFULLY and costs me LESS for a year's worth of service than MobileMe.
Which service are you using for your Exchange account?