About 2 years ago, we bought a Samsung front-loading set for about $2000 from Future Shop. We were also moving from an old set that came with the house (10 years old, top-loading, bottom of the line, etc.).
The difference really is like night and day. It washes better, faster, and with less water. And the dryer takes half as long to get everything fully dry. I can't speak for other brands, although I'm sure they're all fairly similar, but I have been really impressed with my Samsung set.
I have never had a mildew problem. I just leave the washer door open when it isn't in use. My laundry room is in the basement though.
Steam in the washer doesn't really seem to do a whole lot. You can add steam as a function of the "sanitize" feature, but when you're practically boiling your clothes anyway, having it pump a little air into the water seems unnecessary an gimmicky. I have never noticed a difference in the end result.
Steam on the dryer, however, can save your bacon if your shirt is wrinkly and you just need to get it up to respectability. It won't replace ironing, but it will freshen up a shirt that has some light wrinkles in it, which is good enough for some situations.
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