This is an example of how to run a government IT project. Extremely well run team, excellent programmers and designers and using a lot of interesting technology. That's cool for the tech community but for the majority of the users the biggest benefit is a single location for everything. Direct.gov.uk was still a collection of links to lots of external sites but the goal with gov.uk is to have everything on one site. I think this is a great project.
I've always thought a dedicated team of coders, managed and directed well, would be much better for government/educational IT than going with giant corrupt companies. I do hope this goes well.!
Some background at http://digital.cabinetoffice.gov.uk/2012/10/16/directgov-a-q...