We do not like prefolds. The old school cloth diapers that everyone pictured when we said we were going to use cloth diapers are just as bad as you remembered them being.
Travis and I have abandoned the prefolds because with the wetness right on her skin, Lydia gets fussy fast. With her current sleep pattern wherein she only naps for 1.5-2 hours, when it should be more like 5, and she therefore gets a little cranky, we needed to make our lives a little easier - at least until she naps better.
So right now we have only 7 diapers to cycle through and then we go back to disposable. However, once the rent checks start coming our way I am buying a load of BumGenius one-size-fits-all pocket diapers. They are the best of all the ones I've worked with - the velcro stays fastened in the wash like it's supposed to, the velcro is still firmly attached to the diaper, and I just prefer the way the look and feel.