Re: so... kde3.5 was dumped for kde4 why again?
Why would you use konsole when Yakuake is available? I would also recommend checking out the Lancelot Menu in place of the default menu, it is much better (in my opinion).
4.2 (or current trunk) is actually already quite a bit more polished. It has automatic panel hiding and windows covering the panel, the ability to move widgets back and forth between the panel the desktop, the ability for widgets to know what containment they are in and react appropriately (like be a button on the panel or a larger window on the desktop), and a bunch of other things. I am waiting for my distro to backport them right now.