Hand code
I guess it depends if you're a naturally artistic or naturally technical person.
My opinion is hand coding is not as tedious as it's made out to be - if you know what you're doing.
The benefits are it gives you loads of flexibility, you can do what you want with your design and you end up with much smaller code than comes out of an editor which saves your bandwidth and keeps modemers happy

But you've gotta make things easy for yourself, keep things simple.
* First off a text editor is not good for making a design concept! Get out a pencil & paper or your favourite painting program and draw what your site will look like. Then code it.
* One thing that applies to real programming that equally applies to html / css is REUSE. You don't go and write 20k of code for every site you make! Thats just dumb. You write templates that can be used across sites, either the whole thing or bits of it. The more sites you make, the less you have to write. You end up with a library of code that you can copy and paste together and tweak. Once you get to this stage it's probably faster than Frontpage etc. (I don't know I've rarely used them).
* You don't write the kind of code that comes out of an editor. Keep things as small as possible. Learn CSS, much of the stuff in standard html can be put in a css stylesheet and reused to style elements across your whole site. Your html will shrink to a few kbytes. If you've got tonnes of html your page is probably too cluttered anyway, no one likes cluttered web pages.
* Don't have anything duplicated across files. Use PHP / SSI or other server-side scripting to include a single file into multiple pages or vice-versa. What I do is have my main site layout in only one file, as a template, then use php to include other text files which just contain the content into that.
* I'm getting a bit carried away here but you get the idea.
The point is, half of learning to code is learning the languages, the other, more important half is learning to keep things simple, reusable, and well structured, make things easy for yourself. You won't find this important code design point in any "Learn HTML in 2 Days" book or on any web tutorial that teaches this or that fancy feature. You are coding a design but you also need to put some good design into your code.