6:47 AM
The example you give is interesting, because this is not how you would write the Lorentz force in the tensor world. You never use the epsilon tensor in the tensor world unless you have to. B is an antisymmetric tensor, not a vector, and this explains the otherwise mysterious property that it is unchanged under reflections in a point, unlike any other vector (it's a pseudovector). The Lorentz force is
$$ F_i = q E_i + B_{ij} v^j$$
This is important, because it is already four-dimensional, it is
$$ F_\mu = F_{\mu\nu}v^\nu$$
Also, it is just as obvious that the motion is in the plane of B (notice that it is natural to think of B as a plane, not arrow), and perpendicular to v (since contracting B_{ij}v^j with v^i gives zero by antisymmetry).
The notion that B lies in planes resolves many intuitive paradoxes. For example, when you have a current in a wire, why does B go around the wire? The reason is that there is only one plane which is picked out by the wire, the plane spanned by the radial outward direction and the direction of the wire, and the B field must lie in this plane.
Similarly, the B plane for a solenoid is just the plane of symmetry of the solenoid.
Everything is obvious once you realize that B is an antisymmetric tensor. But if you represent it as a vector, you get intuitive nightmares.
About your first point--- the difference between keeping the subscripts and omitting them is that if you keep the subscripts, you can easily teach a student what the equation means---- it means plug in 1,2,3 for the subscripts! There is not a single student who would not understand what that involves. There is no need to think of taking an abstract "vector" and projecting out its "components". This type of abstraction is counterproductive.
The difference is immediate: undergraduates who write out all the indices will never, ever, get confused about what a vector equation means.
The book by Schutz teaches tensors without ever dealing with vectors. If you read Einstein's papers, or that era, this was when tensors were at their heyday, and vectors had not yet been developed! So it is completely wrong that there are no books that deal with tensors without vectors--- all the literature before the 1920s or thereabouts does this. Schutz does this in a modern book ( I learned from Schutz).
I believe that the real reasons people use vectors is to scare people away from physics. Physics in the cold war was a high status profession, and many people wanted in. Under such conditions, the curriculum develops barbed wire, which is designed to keep people out, in the form of useless calculi and counterproductive pedagogy. Physics is no longer a high-status profession, and it is time it acknowledged this fact by making its pedagogy clear, so that it can train people properly.