I had the chance to meet up with Guido at one of the Linux conferences in 1999, back before Python was all that popular. Very nice guy, but something I said then still stands true, in my opinion:
The white space issue doesn't really matter. Except for a few specialized areas like template creation, where Python is just not a natural fit.
That's one of the things I like about Rails - Ruby may not be the absolute perfect language for scripting web templates (maybe Tcl is?:-) but it's good enough, and it's useful without some of the weird hacks that the Python guys use to do templates.