I prefer Wings over milkshape, because
Wings seems to be a lot more advanced
when it comes to low-poly tools....
it is unbelievable, you have to see for yourself...

I might use Blender, for texturing, light baking,
and other cool stuff....

but wings + truespace (or Blender) would probably be better than Milkshape...

But I think Milkshape is easy to use (but then again, Wings is easy too)...

-Jim