i think the deal with the SWS scratchiness is that it has tiny little fibers in it that are more tickley than anything. Because it is essentially a non-plied yarn, I do find that it does split sometimes if i am knitting without looking AT ALL... basically i stick my needle in the wrong spot.
otherwise it really is very nice to work with. I do find it is kind of sheddy when i am working with it. I have never worn any of the scarves I have made out of it though so I don't know if it continues to do so after it is knit up. It sheds sort of like a mohair yarn might shed.
If you are on ravelry you can see my Danica scarves I have made out of it (The Pink and the blue scarves.... the other one is from Malabrigo.) I doubt i would ever do another danica in anything other than the SWS because the stripes are almost perfect!
Sorry I can't link anything better right now because I can't log into any of my photo accounts. Stupid work!