the only need is the logical one... or the permalink one... but I don't see it as a costly exercise to offer that feature - and if it were there, I'd use it myself.
I'd prefer myblog.com/news instead of myblog.com/category/news anyday.... and if I could have the full content on /news and maintain the excerpts only on /category/news that would be even better.
a custom loop builder for pages would be really excellent for a lot of people... but I can see why you don't agree -- I'm pretty good at making templates by now too... I just shouldn't have to be.
Is it really easier to keep telling people that they simply don't understand something which is actually pretty confusing terminology - or is it easier to just make it so they don't need to understand?
"So, it is NOT that they want some kind of special Page with custom Loop"
I agree, and it's also NOT that they want to remodel their category-based archives either. All they want is a result - and either option gives them one, be it in a page template, or a category template.
It would just be nice if 'pages' were the feature in wordpress which allowed you to expand your blog's functionality. As it stands right now, pages are the most useless feature.