In my view--and I think everyone is really saying this--the key is
knowing how to design and write your code effectively in the first
place, so that the refactoring required is pretty minimal.
Refactoring will inevitably need to be done at some point, and IDEs
can help you more quickly do it with automation, assuming you're
comfortable with the tool.  As mentioned, code completion helps avoid
annoying oversights (forgot to write that getter or setter, misspelled
or miscapitalized that method, forgot an import statement).  But no
matter what the IDE, I think you'll almost always have to do some
refactoring by hand.

When I learned Java in school (which was not that long ago), I was
taught to use a text editor and run the compiler at the command line.
I had to find all my own bugs and fix them and be quite aware of what
I was doing when I had to refactor and move code around.  I was
constantly referencing the API when using methods and had to compile
to see if I'd gotten it right.  It was time consuming, but after doing
that for a while, I think I became a better programmer.  For me, this
approach was a great way to learn.  Now, I work in Eclipse (and Flex
Builder) for school and work and have only recently started using some
of the refactoring functionality.  It does save me a little time.

But a mix of tools is great.  I also use Notepad++ for general text
editing, working in HTML and CSS, comparing files, and looking at
syntax-highlighted code quickly.  Many IDEs won't collapse/fold
certain types of code entities (like XML elements, or cases of a
switch block), but I like that Notepad++ will basically fold any block
of code.

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