Back in the day when I didn’t know how to code, I was using WYSIWYG’s like FrontPage (when it existed back then), and Dreamweaver, which automatically generates the code for us. When I started to learn how to code, I mainly used Notepad for the longest time. (That’s so hardcore, right?!) Plain text editors like that don’t have any color coding or auto complete features, but some people just like its simplicity and its fast load time.
At one point I was using Eclipse (free) for Java programming along with GUI, then PHP Eclipse (free) or Zend (free trial) for PHP scripting, which does have color coding that makes it easier to read. I’ve used Homesite before as well. I eventually came to liking the color coding and autosuggest features of editors that makes development more efficient. For example, if you start typing PHP “incl” it might have a suggested drop down of selections so you can select “include()” or “include_once().”
Currently, I use Aptana studio (free) which allows several supported language & framework plugins such as PHP, PERL, jQuery and Prototype, (that way it’s able to color code). A client told me about it, and I found Aptana to be the all-in-one editor (verses the ones where you would have to download and install separate software per language).
If you are a web designer who needs a WYSIWYG tool and/or possibly the editor or build web pages, like in ColdFusion, DreamWeaver is pretty good with the dual screen (showing code editor and WYSIWYG output at the same time). There is a possibility that there are free/paid web tools out there that might have both too; you can search online for that. As for WYSIWYG vs Coding, I prefer coding for the better control, web standards, and optimization, (which some WYSIWYGs might take into consideration.. you would have to check the code), but you can use what best works for you and your projects in your specialty.
Other reads: To WYSIWYG or Not To WYSIWYG? That is the Question.