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Hammer is actually one of the nicer level editors I've used because it's so geared towards a specific purpose. As an engine though, source is a convoluted nightmare with some terrible tools and completely barking mad conventions. You'll spend more time in a text editor than anywhere else.
I've played around with Unity a bit and it's a very, very friendly bit of software. For what you want to do I'd say it's probably a better bet. As you say, UT3 is so feature rich that it may be overkill for what you're trying to do.
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