I've tried using KDE 4.3 and again with 4.4, but one issue keeps me from switching. Let's say that I have 5 windows open and want to move to an empty workplace so that I can actually read what the windows are. In GNOME, moving to another workstation hides existing windows so I can open more windows and do more things. However, on KDE, if I switch to a new workplace, the only thing that changes is that the desktop is visible. All old windows are still at the bottom of my screen. The whole point of having different workplaces is so that I can have many windows active and still be able to read them.

Is there a way to fix KDE so that switching workplaces is as useful as it is in GNOME?

I assume that you use a 4.x version of the KDE Software Compilation. In that case:
1. Right click on an empty space in the task manager widget (the one that lists your tasks/windows)
2. Select "Task Manager Settings"
3. In the dialog under "Filters", check "Only show tasks from the current desktop" and click on "OK"

Tip: The "workspaces" you talk about a usually called [virtual] desktops in KDE.