The main problem with the Community Edition in a production environment is probably that there will never be a truly stable version, since one of the purposes (as I understand it) of the CE is to test out new features that might be incorporated in the EE. There are few, if any, official patches, which means that in order to get rid of a bug you might have to use a nightly build, which may very well contain new bugs.
With that said, I still use Alfresco CE in a production environment and I know that many others do that as well. There are some stability issues from time to time, but to me the EE is not an option because of the costs, so it's really the CE or nothing and I think the benefits of having a DMS system at all outweights the problems that comes with not paying for it.
But I agree that the pricing is a bit steep, which makes the EE a non-existing option for most small companies or startups