See...Hotmail does work, and it is very easy to fix. Scroll down for how-to.
1. Go to the application menu and choose Preferences.
2. Choose the Security option.
3. Select the dot next to Always (for cookies).
4. Close the window.
5. Exit Safari, and open it again.
6. Hotmail will now work.
Why? Hotmail (and Passport in general) uses multiple servers as part of the logon process, and therefore receives cookies from domains other than the one you are currently viewing. Safari's default setting does not allow for this.
Also, for all the people complaining about not having a status bar, it is very simple to get. Go to the View menu, and choose Status Bar.
Overall, I think that Apple made a wonderful browser. I personally have NO need whatsoever for tabs. All I want is a window that remembers its position! Then, I'll be happy. Safari is my default browser anyway, though.