Note that the 2005.1 handbook mentions only the stage3 and not stage1 or stage2. Installation from the lower stages is more error prone and best avoided.
Hardly. Starting from a stage 3 is like starting from any old binary distribution.
Starting from stage 1 & 2 allows you to build a box customized from the ground up optimized for your hardware (assuming you've set the cflags correctly before beginning).
IMHO, stage 3 is for those that don't want to take the lengthy build time for some of the larger packages, i.e. X and kde/gnome, in order to have a basic working gentoo system in a short timeframe.
Granted it will be more error-prone to start at a lower stage, but we're all here because we want that level of build. If we were happy with stage 3 installs, we'd be running from some binary distribution instead.
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