HotSwap is mostly worthless when developing webapps in RC3. Whenever you hotswap a class, the entire contents of the webapp are copied over again to the exploded directory.
Honestly, there are some serious quality problems in and around webapp modules (specifically building exploded directories). Is anyone looking at this? I understand if it isn't resolved for 5.0, but can we at least get an idea of the importance it has for 5.0.1?