Cm7 is "unofficially" supported but works just fine. Thing is, DH put his touches on cm7 to make it better than your typical aosp ROM IMO.
I use Go Launcher. Has so many options your head will spin. Here's a screenshot of just one of the transitions I kinda dig. Also, Go Launcher is free and gets updates weekly. GO team also has a bunch of other apps (like GoSMS- awesome messenger, contacts, dialer, keyboard, weather, etc.) that go very well with the launcher.
Other option is ADW EX which I thought came as a secondary launcher in Shift. Those are the only 2 I would go with.