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Vim. It is challenging at first, but learning it will make you a better programmer.

Couldn't Agree More! MacVim download available here: http://goo.gl/SKUO

Now that 7.3 comes standard on Lion, what are the advantages of using MacVim over the cli vim that is already installed?

Moreso just a personal preference. I migrated to Mac from a PC so I was so accustomed to gVim that MacVim was an easier transition for me.