The 3rd edition was the required text when I took first semester physics in college; the pre-req was a semester of calculus, so I took it my second semester. We covered the chapters on mechanics and thermodynamics, so that is all I can really comment on. Overall I think it is a reasonable book, and the professor made a reasonable course based on the book. Not overly challenging, but reasonable. He did have to hand out notes on elementary aspects of probability, kinetic theory, equipartition theorem, etc, as Halliday seemed to not have much of anything along those lines. Some of the problems in the book are very challenging (the bead rolling off of a sphere problem - try to do it without Lagrangians with constraints!), while some are more plug and chug. My prof. struck a middle ground, if I recall correctly.
Now, is this book the end-all and be-all of intro physics? Of course not. However, for many of us (certainly me) K&K would be much too challenging as a first exposure to these topics and with just one semester of calculus under our belts. Having said that, I did find the approach less than satisfying so switched to the honors track for 2nd and 3rd semester physics, during which I found a few passages in Halliday to be helpful. But since I never really studied much of the EM/waves/modern physics chapters I cannot comment on them.
Currently I use Halliday to block the glare of the late afternoon sun on my window-sill at work. If I want to understand something I cannot recall for some reason, I am much more likely to reach for Feynman.
jason