I only have 1 argument against the STM8 -
The C-Compiler is either crippleware or $$ware.
Do you mean to imply that documentation for STM8 is not as shit as for STM32? I'll just add "crap documentation" to that list shall I? ;-)
Get a STM32F4-Discovery if you need power or space
Heh, I already have a few of those and more on the way.
The STM8 is for a project where I basically need N times (DAC input + PWM output), where the PWM outputs preferably have to support center aligned mode and the cost per IO is as low as possible (you know, the usual). The STM32 certainly will have all the required capabilities but cost per IO pair (DAC input + PWM output) is quite a bit higher than for a STM8 solution.
It doesn't even have to be ST. I am perfectly fine with something MSP430-ish or NXP LPCxxx or AVR if it fits the bill. Hell, I might even consider Microchippie but it had better be a
really good fit for the project.
I went over all of that and STM8S2xx seems to be the best fit for the requirements of which the above is a very rough sketch. :p