I LOVE LOVE LOVE pelleted bedding. I have tried probably every different kind of bedding known to horse-dom, and can't believe it took me so long to come to this. It's like cleaning a giant litter box and the stalls are so clean, all the way to the mats. The pee spots are even easy to pick up.
I went to a pasture and waste management class put on by my local conservation district/extension office and the were strongly in favor of pelleted bedding as well. It is good in your compost pile and there is less of it to clean out of the stalls than, say, straw bedding. I have a clydesdale, two bigger donkeys, a pony and two minis and truly I only have one wheelbarrow full a day in the winter. In January and February I dump the stall waste on my veggie garden (so about 60 wheelbarrows full), leaving it fairly mounded then wait until mid-May when it's all nice and broken down and then it's rototilled in. I have a garden the neighbors envy every year.
The only downsides I have run across is that the pellets are kind of like ball bearings when you first put them in the stall, so I water them down just a little bit to start the breaking down process. Another downside is that if the construction demand is down, then they are not making as many pellets and you are competing with people who use them for their wood stoves and the prices go up and availability goes down. I make sure to buy mine in August when demand is low and you can often find sales. I use about 2.5 tons a year and it sits neatly on two pallets in the corner of my barn. Lastly, the wood in the stall waste somehow effects the nitrogen in the soil as it decomposes, so I found that I needed to add nitrogen to compensate. No biggie.
It will be interesting to watch this thread to see what other people think of it!