Wow, that's not what I've experienced.
True, It's a bit of a pain to create the inital profile, but once you have that, that following is all true:
1. The movies look GREAT on the device.
2. The software is incredibly user friendly, unlike a lot of the free rippers out there. It's an incredibly simple 4 step process. Import, Throw into the storyboard, click publish, type in a filename and directory where the zune library will pick it up, and select your profile. Setting up a file to re-encode takes less than 30 seconds.
3. The software is from a name I trust, and it's free. I don't have to worry about trials or spyware.
4. The re-encoding is blazingly fast. I just recoded some episodes of Heroes; each 45 minute divx episode took only 7 minutes. I just reencoded a two and half hour movie and that only took about 35 minutes.
5. If you set up the encoding profile correctly, the file doesn't need to rencode when syncing to the zune--it just gets copied over. Period.
6. Last, but probably the best feature: Movie Maker piggybacks windows media player's codecs. That means if you can watch it in media player, you can encode it for the device. I recommend downloading the K-Lite codec pack; with it, I just put a 2.5hour QUICKTIME movie on my device. The same codec pack will also enable you to sync YOUTUBE, IFILM, GOOGLE VIDEO and the like movies to the device. To download these files for reconversion, use
http://www.keepvid.com/ .
UPDATE: K-Lite also allows interpretation of VOB files. What this means to you is that you can pop a DVD in your drive, explore it, drag and drop the VOB files into movie maker, and then rip the video directly from the DVD into a zune-ready format.
So... yeah, Movie Maker.