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compiz works on XFCE.
I like cool looking desktop and I use xfce.
You can do anything with xfce. You can configure it so as to look exactly like gnome or kde. You can even start kde or gnome daemons at boot. To me, the difference is clean design. KDE and Gnome are so big progect that they tend to over-engeneer. Why the hell do you need CORBA to change the color of the background? It's just extreme over-engeneering. XFCE implements all the functionalities with straight design and the result is that it is consistant, fast, reliable and simple to use.