I've not yet switched from XP, but from what I've been reading, UAC is undoubtedly flawed, not by design but by its implementation as proved here:
Windows 7 UAC whitelist: Code-injection Vulnerability (and more)
And even though rundll32.exe is not in the whitelist anymore, as it's stated here:
Short: Windows 7 Release Candidate auto-elevate white list, code-injection is still possible as proved in the 1st link.
Of course, this is only possible when using an Admin account, which many people still do in Vista/7.
kay wrote:
It should provide better safety (...)
You said the magic word,
"should".
Let's see how that turns out in the RTM, or SP1