Excellent post, and I'm not just saying that because I agree with nearly all of it.

I have been discipline since WotLK began. I was thrilled when I saw what Blizzard was doing with the spec in WotLK and although I keep meaning to try out the new Holy talents sometime, I'm having too much fun right now. I've had a very positive response from my guild generally and a number of them are now fans of discipline and want to try it on their priests. I think the "pretty lights" effect is definitely a factor here - everyone loves the swirly penance laser and one of my tanks calls the divine aegis bubble his "hamster wheel."
Some comments on points raised:
Keep Penance/shield on cooldown vs. save them: This is a fairly simple question - penance is our best emergency save, and it's also our most mana efficient heal. Which do you need more in a given fight? If you really want that emergency option, then keep it in reserve; if you don't, or if mana efficiency is more important to you, then use it every time you can. In a timed CoS run where the tank takes high constant but predictable damage, I will use it a lot. On Kel'thuzad, I will save it so I have it available for frost blasts (shield+penance will easily save two people from this if needed, even if you have latency problems like I do). Note that penance gives 3 chances to crit and proc inspiration, which makes it even better in endurance fights.
Raid healing: we are better at this than people might think, we just have to approach it differently. Our raid healing is proactive rather than reactive. In fights where mana isn't an issue, which is most of them since rapture is such a great talent, I will generally pre-shield raid members if I know AoE damage is coming or might be coming. The 3.1 talent reducing PW:S cooldown and mana cost will make this much more viable and effective. Not only does this allow you to preemptively mitigate a lot of AoE damage, but it also supercharges prayer of mending due to the crit bonus from weakened soul proccing divine aegis, which adds even more raid damage mitigation. Also renew, being instant, doesn't consume the 25% haste buff from casting PW:S so you can cast a lot of them in a short time for more group healing. I like to glyph renew for this reason (AoE healing situations) even though I hardly ever use it at other times. PoH and holy nova are of course situationally useful as well.
Other notes:
Avoid overheals where possible, because rapture only returns mana on the
actual amount healed. With enough spellpower and intellect, rapture can reduce the effective cost of a penance to almost zero, but if it's all overheal then you're paying full price for it. This is in contrast to holy priests, who get mana back on overheals - the same amount whether it's 1% or 100%, so a holy priest will always be trying to heal the target a fraction above full for regen purposes. If you are in a situation where heal sniping is a possibility (almost always the case in 25 man Naxx especially) this really favors flash heal over greater heal - if someone heals your target to 100% right before your greater heal lands, you've just lost a huge chunk of mana. Never pay full (mana) price for your heals as discipline if you can avoid it.

For gear, I highly recommend the Greatness card in its +90 intellect form. If it procs on intellect (as it should if you're following the gear advice in this thread) it will add around 5000 to your mana pool for the duration, meaning much more mana back on rapture, and replenishment if you have a source of that. Greatness card and spirit world glass is my regen combo and gets me through mana-intensive fights quite nicely even without replenishment. To be honest though, discipline is so mana efficient that I tend to gear for crit/int/spellpower and just keep a few swap pieces around for fights and groups where I need a regen boost. This is another factor that offsets the higher raw healing power of holy, since we don't have to gear regen as much as they do and can stack spellpower more.