I've had one for just over a year. I love it, although it is far from perfect. It certainly is not a contest radio, either on CW or SSB. It just doesn't have the selectivity, and the DSP is rudimentary. I've used it for SSB contests, including Field Day this weekend, but it has issues with both IF selectivity and audio quality. But for what mostly I use it for (digital modes, connected to a PC), it works great.
I agree about it being less than perfect, but I find it's a fun rig to operate. And yes, it shines on digital operation, but I've used it for contesting as well, on both CW and SSB. Agreed that it's not a top of the line radio, but it's certainly no slouch either. The selectivity is no worse than other comparably priced rigs. It's on par with my old TS-520 (with filters installed), and much better than my TS-50 or an IC-718...
The TS-480 is a sweet rig as long as you can deal with the two-piece ergonomics, which doesn't work for me. It also needs to have the mechanical filters installed, but if they're in there, it works great. I'm a Kenwood fanboy, and still have my "vintage" Kenwood rigs (TS-520, TS-50, TS-130 and TR-9000), but the Yaesu has really grown on me, modest as it is.