I don't understand what's so bad about tabs. With tabs, all you have to do is adjust the settings in your editor, and each programmer gets the indentation (s)he wants: 2, 4, 8, whatever...
Also, do you really want to be pressing the space bar twelve times, instead of tabbing three times?
I've seen the results of spaces-only: inconsistent, sloppy indentation, 7 or 9 spaces instead of 8, as long as it looks "indented" enough.
How, specifically does the tab character "not seem to have worked out at all"?
I'm not saying you're wrong for using spaces, just wondering...