that's not saying much
Well personally I think svk's merge support is significantly better than SVNs. I find the trivial handling of mirrors and remote branches/merges a joy.
it still has issues
Yup... I do hit snags occasionally. Very occasionally though.
Incompatible changes still have to be merged by hand.
True - but that's always going to be necessary.
Some CPAN modules may change a couple lines a release. Then, there's modules like DBM::Deep that will add and remove whole files and those that stay will be significantly changed, even though the API and behavior that you care about hasn't changed at all.
All true - and I still prefer to have all the dependencies for my build in source control so I can figure out those changes if/when they cause problems.