For a production server I wouldn't go with Sid. That's 'unstable'.
Maybe your thinking of 'Sarge'?
Sarge is what you'd use if you want something that 'just works'. You have a server to setup or you have a bunch of desktops/workstations to setup. Debian has some very advanced management tools/technics that makes Debian Stable probably the most low-administration-overhead operating system that I know of. Updates are rare and far between.. Just security updates mostly.
Sid is just the opposite. Routenely your downloading hundreds of megs of updates every week. Things break regularly. It's very high maintainance.
Use Sid if you want to be cutting edge with most software. When Ubuntu releases it's version it's a snapshot of Debian sid (pretty much) with newer GNOME, some user-friendly mods, newer X, and other Ubuntu tweaks added on... It's newer for a little while, but after a month usually Debian Unstable has newer stuff. (there are a few exceptions, of course, like Debian still would use python 2.3) Debian Sid is continiously updated.
Etch is nice depending on what is going on in Debian-land. It's goal is to be the next stable.. not to be usuable in it's development stage.. Although due to the nature of Debian development it's usually pretty decent. Usually much less of a headache then Sid.
Ubuntu is good for newer users. It's a very good home distro. You get new stuff and then small updates, with big updates every 6 months or so. Although there are things that Ubuntu does that piss me off and I don't think quality control is as good as Debian... Although for Dapper they delayed it's release for that specfific reason (testing it more). I think that they still do a very good job though.
One thing that improves the desktop usability of Sarge is the unofficial Debian backports. These are specific groups of packages from Testing/Unstable that have been recompiled specificly to work with the current Debian stable. So things like newer KDE or newer Gnome.
I think that Debian still has too high of a learning curve for newer Linux users.